Table: You've Got Problems
The saturated U.S. dial-up market means fewer new users and more discounts needed to get them.
FALLING AD SALES
Anemic ad revenues may not revive until later this year. In their place, Time Warner is pushing its own magazines, music, and other content to boost revenues.
LAGGING FOREIGN BUSINESS
AOL faces stiffer competition from foreign phone companies and Internet service providers. And buying back Bertelsmann's share of AOL Europe in 2002 could cause a $300 million loss.