AOL Reinvents the Online Video Wheel

AOL has announced the test launch of its revamped Internet video service. The Dulles-based Internet division of Time Warner Inc. will make available, starting on Friday this week, its reinvented online video service featuring additional characteristics as part of a beta phase with the final version of its solutions due by the end of August 2006. By increasing its agenda of offers, Time Warner aims to transform AOL into the number one online videos one-stop shop.

"We're trying to integrate all elements," instead of specializing in user-generated video or movie trailers, or having a video store," said Josh Freeman, vice president of AOL Video. "AOL's goal is to get viewers to think about tuning into Internet videos the way they turn on their television."

The evolution of AOL Video is marketed by additional features that will allow users to upload their own media creations as well as search for similar user generated content or search, buy, rent and watch TV programs from over 45 networks. Viacom Inc.'s MTV, Nickelodeon, the Comedy Central networks, the A&E Television Networks, and Warner Bros. have already confirmed their participation in AOL's new project.

"What we've really seen in the market for online video consumption is that it is moving quickly from early adopter to early majority," Kevin Conroy, executive vice president of AOL, explained in an interview. "We're in a really good place to help fuel this and bring this together".

This move from Time Warner is part of a larger strategy meant to shift AOL's business from its subscription based market tactics to a plan designed to be fueled exclusively by online advertising while users will be permitted free access.