Corporate Strategy: Will AOL Video Platforms Kickstart a Comeback?
By Karla Robinson
November 8, 2012
November 8, 2012
- Once an Internet giant, AOL has dwindled as dial-up subscribers dropped off and Time Warner dropped the company. Now, CEO Tim Armstrong and executives have unveiled a new plan for the company, which could signal a major comeback.
- “That strategy involves pruning the company into three operational units: a membership and subscription group; a ‘content brands group’ (Huffington Post, TechCrunch, etc.); and an advertising group,” reports paidContent.
- “The first group,” the article continues, “amounts to a legacy unit that will presumably be spun off or milked for cash while the other two units could drive AOL’s re-emergence as a powerful media entity. According to Armstrong, advertisers are looking for ‘fewer, bigger partners’ that can distribute their messages on a massive scale. If he is right, AOL is well-poised to offer ad buyers what they want through its network of content providers, partners and ad platforms.”
- AOL’s ad networks and video platforms have seen impressive growth, giving the company its best results in seven years.
- Armstrong anticipates AOL’s video revenue to rise to $100 million in 2012 from just $10 million two years ago. The company claims it has risen to No. 2 in overall video views, trailing only YouTube.
- “Finally, AOL predicts that 2013 will see more and more TV dollars pouring into its sprawling video properties… and that video will eventually overtake display dollars,” paidContent writes.
- “If these predictions are even partly correct, it means that AOL has a leg up in the emerging (and lucrative) video ad market and that it will have to be less preoccupied with the problem of mobile media consumption that keeps up other publishers up at night,” the article concludes.
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