Web-pioneer AOL dissolves its entire Internet service provider business, as the focus shifts more toward becoming an ad-supported content delivery portal. Time Warner's AOL division said it will enter the growing download-to-own video and search market later this week when it begins selling TV programs like 'South Park', 'Flip This House', and 'Babylon 5'.
AOL Video is set to give casual surfers a one-stop interface to plenty of compelling content through a combination of on-demand streaming channels and a comprehensive meta-search feature. The video-on-demand effort will center on a program guide format that should look familiar to anyone who has seen the TV Guide channel or any of today's digital cable or satellite program guides. Some of the content will be freely available, while there will be a charge for other pieces. Over 45 channels are slated to appear in the beta launch, including The History Channel, Nick Jr., and Comedy Central.
Technology from Truveo, the video search engine AOL purchased in December, and Singingfish, acquired in 2003, will power the site. Clips not hosted on the site will appear through AOL's video search tool. Those could include user-contributed videos from sites Google, YouTube or MySpace.
Jupiter Research senior analyst Joseph Laszlo says AOL is seeking a long-term strategy in video and search. "AOL will remain the most important dial-up ASP, though they are losing millions in a shrinking business," he said. "I think we'll start to see more services in video, music and instant messaging."
AOL also plans to publish Open APIs by October that will let developers incorporate AOL's Video Search results into third-party sites. AOL, PC OEMs and broadband service providers are working to develop co-branded versions of the AOL Video portal. The portal will integrate AOL's UnCut Video offering to let consumers upload and share videos directly from their camcorder, Webcam, video-enabled mobile phone and PC. AOL also plans to create a development community similar to eBay , McIntyre confirmed. "We understand it takes commitment and investment, but certainly that's a big part of AOL in the future," he said. "We have some expertise doing that with the WinAmp media player."
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