AOL reorganizes to focus on online advertising
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(InfoWorld) - Less than two years after its last major reorganization, AOLÂ  is again redrawing its internal business architecture to better align it with its new strategy toÂ focus on online advertisingÂ and retreat from the Internet access market. In an e-mail message to employees Wednesday, AOL Chairman and Chief Executive Officer Jonathan Miller said AOL's four business units -- Access, Audience, Digital Services and Europe -- will be replaced by "smaller, nimbler product groups with more authority and greater accountability." AOL must become a global business led fully by its products, he wrote. "We made progress breaking down the matrix, but we did not, in my opinion, go far enough. Now we will go further," reads the e-mail, a copy of which was obtained by IDG News Service. While product leaders will become general managers with wide-ranging authority over product development, the ad sales operation will remain centralized, as will the legal, human resources, finance and public relations operations. Having companywide oversight and services is important, he wrote. "The recent Search data debacle is a prime example of why, even with the best of intentions, without proper oversight, costly mistakes can be made," Miller wrote, referring to the scandal that erupted last month from AOL's release of search engine records. Although the reorganization is in flux, Miller has defined several roles. Randy Boe has been entrusted with a unit dedicated to AOL's protection of consumers, and he will soon appoint AOL's first chief privacy officer. Boe's replacement as general counsel will be announced next week. There is no mention in the e-mail about what role, if any, Tatiana Platt, AOL's senior vice president of integrity assurance and chief trust officer, will play in this unit led by Boe. Boe will report to Ted Leonsis. A high-ranking AOL veteran of 13 years, Leonsis willÂ give up his day-to-day management dutiesÂ as president of the Audience business in January, while retaining his role of vice chairman, AOL announced last week. Joe Redling will be in charge of AOL's international, mobile and customer relations businesses. AOL needs to boost its international business and will announce a new international structure "soon", Miller wrote. Mobile efforts also need strengthening, because it's an area where the company hasn't had enough focus and investment, Miller wrote. Jim Bankoff will continue in charge of AOL's programming and the AIM instant messaging service, while Kevin Conroy will oversee AOL-branded products such as the AOL.com portal, Web mail service and video offerings. Mike Kelly will continue to run the ad sales operation. These four executives will provide further organizational details about their teams in coming weeks. Last month, AOL announced its intention toÂ slash as many as 5,000 jobs worldwide, or just over a quarter of its workforce, anticipating the shrinkage of its access business.
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After spending the last few years in a whirlwind of activity that, in the end, got it just as far along as if it had been in limbo, a kick in the tail by new Time Warner CEO Bewkes has AOL back in gear, with a mobile premiere for its new ad platform.
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Internet giant AOL has revamped its Web-based music download service, adding music videos, streaming radio and user community features.
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After 22 years in the Dulles/Reston area of Virginia, AOL will move the majority of its operations to New York City to be closer to the hub of worldwide advertising, which makes up a good deal of its new business model.
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InfoWorld - Time Warner plans to split up the Internet access and audience businesses of its AOL segment to run them each independently, Time Warner CEO and President Jeff Bewkes revealed Wednesday.
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DULLES, Va. -- The walls surrounding America Online Inc.'s well-manicured gardens are crumbling: AOL is abandoning its strategy of exclusivity and will free much of its music, sports, and other programming to nonsubscribers, in hopes of boosting ad sales.
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AOL will begin handing out pink slips today to 20 percent of its global workforce as executives intensify their effort to transform the company from a subscription Internet provider to an online advertising powerhouse that can compete with Google and Yahoo.
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AOL said on Monday it has realigned its advertising business and expanded a deal with Hewlett-Packard Co  beyond the United States, as part of a move to take its properties and services into more than 30 countries in two years.
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AOL, the world's largest internet services provider, is to split into four separate divisions to cut red tape and boost profits.
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By Anonymous  AOL will rely almost exclusively on the web to promote its internet portal, following a shake-up of its strategy.  The company is evaluating its agency arrangements after offloading its broadband business to Carphone Warehouse for 3 70m last year.
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AOL on Wednesday plans to launch a new  version of its software that lets users access their e-mail,  instant messaging, search and media on the same screen.
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The company said it plans to separate AOLâs access business, which is its  dial-up Internet service, from its audience unit, its portal and advertising business.
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Time Warner Inc.  Chief Executive Richard Parsons said on Tuesday it was eyeing more Internet deals next year focusing on advertising technology, to bolster the transformation of its AOL Internet division.
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America Online is testing a souped-up, totally redesigned pre-release of its widely visited AOL.com homepage. After lying dormant in the trappings of its classic design scheme, AOL.com has entered the era of high bandwidth. Much like other leading Web portals, users have their pick of news and other content feeds. Lastly, AOL has moved its search engine â powered by Google â front and center along with the most popular AOL.com destinations.
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America Online Inc. Monday put new leaders in senior posts and revamped its corporate structure in a sweeping overhaul. -The Washington Post
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Time Warner plans to split up the Internet access and audience businesses of its AOL segment to run them each independently, Time Warner CEO and President Jeff Bewkes revealed Wednesday.
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In a move both risky and essential, AOL is abandoning its strategy of exclusivity and will free much of its music, sports and other programming to non-subscribers in hopes of boosting ad sales.