Thursday, July 06, 2006

AOL speeds move to free ad portal - why?

AOL is considering offering all their services for free to anyone with a broadband Internet connection. This would complete AOL's transition from a subscriber based ISP business model to a free advertising supported Internet portal.

AOL's new leader, Bewkes, would be taking a bold move if Time Warner's board choose to implement his plan - but only bold moves such as these transform companies. The real question is transform AOL to what?

Being yet another free Internet portal competing with the almighty Yahoo, Google, MSN and MySpace may not be enough. They should embrace online video much more aggressively and potentially acquire YouTube. To become the Internet TV and movie portal - now that is a space they could own and perhaps even dominate.

They will have to move fast and ambitiously though, for Yahoo and Google are making big strides.

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