Sun, Jul 13, 2003 - Page 11 News List

AOL ends some Amazon links

NEW RELATIONSHIP The US media giant AOL Time Warner is shifting away from its close cooperation with Amazon, as it strives to boost sagging revenue with direct sales

BLOOMBERG

The two sites receive 33 million visitors a month, Wilson said. Jonathan Miller, chief executive of America Online, has been trying to build audience by offering exclusive acoustic recordings, interviews with popular acts and other unique content.

"We really focused on building audience before we started focusing on commerce," Wilson said.

America Online subscribers will be able to order CDs and videos with a single mouse-click, he said, because America Online has its customers' credit card and billing information.

That will prompt America Online subscribers to buy CDs and videos "on impulse," Wilson said. A subscriber, for example, can sample a new Carlos Santana song on AOL Entertainment and buy the album with a single click.

"Presumably, instead of getting just a cut of the revenue, they'll get more and have flexibility on how they continue the conversation with the consumer," said Robert Leathern, an analyst with research firm Nielsen/NetRatings.

Miller said last year that he wants to boost America Online's revenue from electronic-commerce and by charging for access to America Online's content for consumers who receive Internet-access from other providers.

America Online's revenue declined 4.1 percent to US$2.2 billion in the first quarter, as the service lost subscribers in the US and advertising sales declined by 42 percent.

America Online's past accounting practices, related to ad sales, are the focus of an investigation by US Justice Department ant the US Securities and Exchange Commission, the company has said.

America Online has contracted with Alliance Entertainment Corp to manage stock and deliver orders from its online music and video store, said Ann Burkart, a spokeswoman for the Internet service.

America Online's plan to sell videos and records directly was reported earlier today on the Web site of Variety magazine.

This story has been viewed 2566 times.
TOP top