NY Times: A New Model for AOL May Influence Cable’s Future

A fascinating report by Seth Schiesel on the evolution of the cable and online information services industries.

I’m one who likes to understand “reversal points” in business — where things reach a crescendo and suddenly everything changes.

For years, AOL paid information providers to provide content to AOL members. Then one day, shortly after Bob Pittman’s arrival, he flipped the whole equation upside down — content providers had to pay AOL for “presence” on their network.

Now AOL is going to have to start developing some of its own unique “programming” again — and its competitor this time is much richer and diverse: it’s you, me and the rest of the Internet.

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