AOL Time Warner executives yesterday laid out a plan to stabilise
and boost America Online (AOL), with an emphasis on broadband and
premium services, while reining in costs, retooling advertising
offerings and restoring the company's integrity.
"We don't pretend to have all the answers but I am confident we
have arrived at a plan to put AOL on a path to growth," AOL chief
executive officer Jon Miller told the audience during an AOL
presentation in New York.
Miller, who took the helm of the world's largest Internet service
provider last August, laid out his vision for revitalising the
struggling service as it faces slowed subscriber growth, declining
ad revenue, mounting competition and US government probes into the
company's accounting.
Miller said that while broadband growth is central to the company's
strategy, AOL would also work on its dial-up service. "Narrowband
is not going away. It will continue to be a part of this market for
many years."
AOL will target narrowband user concerns such as connectivity
issues, security and spam, while offering more differentiated and
exclusive content.
On the security front, AOL announced a deal with Network Associates
to provide users with free McAfee e-mail virus scanning software.
Under the agreement, AOL is also offering a subscription security
service. Both services will be available in the first half of next
year.
AOL is concentrating on offering premium broadband offerings,
particularly from other units of AOLTW's sprawling media empire. It
confirmed yesterday that its Time division sealed a deal to provide
AOL with exclusive online content from its magazines such as
InStyle,
Entertainment Weekly,
People and
Teen People.
The ISP has also forged an agreement with CNN to integrate CNN
video and text into its news service, and is producing original
content in conjunction with TV company HBO.
CNN's pay video service, which is now available for $4.95 (£3.16) a
month on the Internet, will be accessible via AOL Broadband as a
new member service.
Furthermore, AOL is collaborating with Warner Music Group to offer
users digital music downloads, as well as the MusicNet service for
streaming, downloads and CD burning. It will also be working more
closely with Warner Brothers Pictures and New Line Cinema to offer
premiere video and tie-ins online.
"Our hope is to work along our entire array of our businesses,
offering [a service] that is so compelling subscribers cannot live
without it," said AOLTW CEO Richard Parsons.
AOL is also turning the heat up under its bring-your-own-access
Internet service, as well as pushing wireless offerings.
"This emerging multiband world creates challenges and staying in
this game means rethinking (our strategy)," Miller said.
As part of the company's image-bolstering campaign, AOLTW chairman
Steve Case has asked AOL members to send in their complaints about
the service.