This era of computers slightly predates me so it’s difficult to understand the context - aol was a desktop application installed via cd that have you connection to other users and access to content somehow, but not via the internet?
AOL's brand name was huge, in no small part to their constant carpet-bombing of the entire country with CDs and diskettes promising to get you online today with 250 free hours or whatever. I really can't describe how impossible to avoid these things were in the 90s -- they were EVERYWHERE. So even after it became clear that the party was on the Internet and AOL became just a way to get to it, AOL still dominated the ISP business for a while. A number of things eventually did them in, not least of which was broadband.