Posted: 03rd Aug, 2003 By: MarkJ
Having failed to reach an agreement with BT over replacing UK ISP
Freeserve in a key distribution (CDs etc.) deal, the high-street chain Dixons has now established a new arrangement with AOL UK:
The move ends one of the most profitable relationships of the dotcom boom, from which Dixons has made more than £600m.
The Telegraph revealed in June that Dixons had held secret talks with AOL and BT as part of a review of the long-standing joint venture under which Dixons, the UK's largest computer retailer, pre-loads Freeserve software on PCs sold in branches of Dixons, PC World and Currys.
The agreement, which does not cover broadband software, also includes joint advertising campaigns and in-store promotion. AOL will replace Freeserve in February 2004, although Dixons could announce the new deal within weeks.The deal is rumoured to be worth around £10 million, a sum that
Freeserve was apparently unable to compete with. More in The Sunday Telegraph newspaper.