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I heard and read that part of the reason for this strategy is to tap into the remaining, entrenched dial-up users who sees no reason to upgrade. This, in the wake of broadband users reaching saturation.

Also, AOL's primary reason for its former dominance has been user friendliness and easy access for the mainstream. Unfortunately for them, internet users have become more savvy since then, and at the same time, internet applications (ie. web browsers) have become much easier to use.

In response, Time Warner has been making some bold moves to try to tap into the remaining 15% of the internet users who are still using dial-ups. It will be interesting to see whether this business model will work or not.