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« What Rocky and Bullwinkle taught me | Main | Local TV interview March of Dimes Board Member: Dr Robin Baker »

November 24, 2009

Comments

Mark Hinkle

I agree that AOL is not dead but I have to wonder where their future lies. As their primary business is a commodity, internet access. They rose to power over the other ISPs by providing the content on top of the internet access business. As someone who worked for their competitors at the time( PSInet, MindSpring and eventually Earthlink) the thing that distinguished them was their content and especially their chat rooms. It made them sticky and kept their churn relatively low for their size.

That's why on paper the Time Warner deal looked so good, more content but they never really generated any synergy or served as that next gen content delivery platform for Time Warner.

I wonder if their is a play for them to partner up with someone like NetFlix to bring the latest generation of content to their 6.9 million subscribers. The economics of that business are pretty bleak when you don't own your own pipes anymore and there's no premium upsell.

Don

Mark, Thanks for commenting. I think the primary assets are content, advertising capabilities and commerce....

Joe Dixon

Uhhh... I'm not sure where this comes from "Headquarters moved to NYC and may or may not move back" because it's superbly unlikely that VA survive much in this reorganization.

AOL is aiming to be a media company and VA has little to offer in that arena. I would argue that the odds of AOL "moving back" are close to nil (especially considering that most/all new senior-level hires are now in NY). But, wishful thinking...

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