Just following a $17 Billion buy-out of the bankrupt cable operator, Adelphia Communications, with the help of Comcast; Time Warner reported earnings today, with a $1 Billion profit. An increase in high speed internet and digital phone customers helped grow the cable TV business and revenue rose 1% to $10.7 Billion, all following a $20 Billion share buyback of the company. The cable TV portion encourage Time Warner's above analyst estimated earnings, with rising revenues of 15% and up 16% in profits. But, low performing AOL, who has lost an estimated 976,000 internet subsribers in the U.S. this past year, stated that they will be moving away from their paid content platform and instead will feature it's content and services (
not connection services such as dial-up and broadband connection) for FREE! Advertisers were apparently not receiving enough ad inventory and were fed up with AOL, therefore allowing competition like Yahoo!, MSN and Google to grow even more. AOL currently has a growing number of quality of service and traffic on it's portal
(AOL.com and other sub-serviced sites like AOLtravel, and Finance to name a few). I think that Time Warner had no other choice but to launch this new strategy for the ever downgraded AOL. Overall, its a great idea in my opinion, I think that Time Warner and AOL should have made the decision much earlier...instead they allowed MSN and Yahoo! to gain all the ad revenue. In order for the company to go about on their new plan they are in desperate need of a stronger team with experience in the ad industry rather than the original ISP sector. I think that the CEO is great, and Time Warner is a smart company... so this may turn out good. Word on the street is that AOL will be sacrificing billions of dollars in cash flow, but their growth and potential in the online ad market (AOL already being the second largest portal site, following Yahoo! in terms of subscribers) may help the comany regain their top spot that they ounce held back in the internet booming 90's.
This is a Hot Story... I would love to hear some COMMENTS... please Blab on>
Just following a $17 Billion buy-out of the bankrupt cable operator, Adelphia Communications, with the help of Comcast; Time Warner reported earnings today, with a $1 Billion profit. An increase in high speed internet and digital phone customers helped grow the cable TV business and revenue rose 1% to $10.7 Billion, all following a $20 Billion share buyback of the company. The cable TV portion encourage Time Warner's above analyst estimated earnings, with rising revenues of 15% and up 16% in profits. But, low performing AOL, who has lost an estimated 976,000 internet subsribers in the U.S. this past year, stated that they will be moving away from their paid content platform and instead will feature it's content and services (not connection services such as dial-up and broadband connection) for FREE! Advertisers were apparently not receiving enough ad inventory and were fed up with AOL, therefore allowing competition like Yahoo!, MSN and Google to grow even more. AOL currently has a growing number of quality of service and traffic on it's portal 
(AOL.com and other sub-serviced sites like AOLtravel, and Finance to name a few). I think that Time Warner had no other choice but to launch this new strategy for the ever downgraded AOL. Overall, its a great idea in my opinion, I think that Time Warner and AOL should have made the decision much earlier...instead they allowed MSN and Yahoo! to gain all the ad revenue. In order for the company to go about on their new plan they are in desperate need of a stronger team with experience in the ad industry rather than the original ISP sector. I think that the CEO is great, and Time Warner is a smart company... so this may turn out good. Word on the street is that AOL will be sacrificing billions of dollars in cash flow, but their growth and potential in the online ad market (AOL already being the second largest portal site, following Yahoo! in terms of subscribers) may help the comany regain their top spot that they ounce held back in the internet booming 90's. This is a Hot Story... I would love to hear some COMMENTS... please Blab on>
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