Post by dkennedy on Jan 31, 2005 10:21:12 GMT -5
i-Newswire, 2005-01-31 - Don Logan, Chairman of Time Warner's Media & Communications Group, said: "This new agreement aligns the strategies of America Online and Time Warner Cable in the fast-expanding broadband sector, and it will enable each business to focus on its key areas of growth. Time Warner Cable should accelerate its acquisition of high-speed data subscribers, while AOL should enhance the lifetime value of its member base and maximize its revenues from online advertising, search, commerce and premium services."
Jonathan F. Miller, America Online's Chairman and Chief Executive Officer, said: "By working closely with Time Warner Cable, we're making it easier for our customers to enjoy the best of the AOL service's premium content and features designed for broadband with a top-quality, high-speed connectivity service at an affordable price. This agreement provides another way for America Online to extend the subscriber lifetime of AOL dial-up members who want to move to broadband. This partnership will also make it easier to reach a new pool of broadband consumers and monetize an even bigger broadband audience through advertising, search, commerce and select premium services."
Glenn Britt, Chairman and Chief Executive Officer of Time Warner Cable, said: "Growing our high-speed data business is a top strategic priority for Time Warner Cable. We are very pleased to have reached an agreement that gives both Time Warner Cable and America Online opportunities to capitalize on the migration of AOL dial-up members to broadband. This partnership will also improve the Road Runner experience by offering access to AOL's compelling broadband content, features and functionality."
Under the agreement, the new broadband offering will consist of a special edition of the AOL client with its popular content and features optimized for broadband that is combined with Road Runner's high-speed connectivity and its content. This new offering will provide unlimited broadband access as well as 10 hours of dial-up connectivity monthly. Once installed by Time Warner Cable, the new offering's client will be available on the computer desktop and the AOL.com portal will be set as the default home page.
America Online will also manage and sell advertising and search inventory for both the new offering and Road Runner.com. In addition, AOL will be able to provide commerce opportunities and premium services to the subscribers of the new offering and Road Runner.
America Online and Time Warner Cable will work together to migrate existing AOL and Road Runner subscribers and prospects to the new offering as their lead broadband offer. America Online will market to its current narrowband members, while Time Warner Cable will target Road Runner subscribers. The two will coordinate their marketing efforts to sign up prospects. The new offering is expected to roll out across Time Warner Cable's footprint over the next several months.
Pricing will vary according to connectivity speed, and a number of price points will be tested in the initial rollout market; however, pricing will be set with the goal of driving share while maximizing profitability.
Time Warner Cable will manage the subscription billing and customer care for its services and provide a share of the subscriber revenues to America Online. For its part, America Online will provide a share of its advertising, search, commerce and select premium services revenues to Time Warner Cable.
The Road Runner service will continue to be available on a stand-alone basis to subscribers who elect not to take the new offering. To enhance the Road Runner subscriber experience, America Online will provide programming and functionality ( on both a branded and white-label basis ) - such as broadband content and enhanced communications features. Time Warner Cable customers who currently receive broadband service from an ISP provider other than Road Runner or AOL will not have their service affected.
Jonathan F. Miller, America Online's Chairman and Chief Executive Officer, said: "By working closely with Time Warner Cable, we're making it easier for our customers to enjoy the best of the AOL service's premium content and features designed for broadband with a top-quality, high-speed connectivity service at an affordable price. This agreement provides another way for America Online to extend the subscriber lifetime of AOL dial-up members who want to move to broadband. This partnership will also make it easier to reach a new pool of broadband consumers and monetize an even bigger broadband audience through advertising, search, commerce and select premium services."
Glenn Britt, Chairman and Chief Executive Officer of Time Warner Cable, said: "Growing our high-speed data business is a top strategic priority for Time Warner Cable. We are very pleased to have reached an agreement that gives both Time Warner Cable and America Online opportunities to capitalize on the migration of AOL dial-up members to broadband. This partnership will also improve the Road Runner experience by offering access to AOL's compelling broadband content, features and functionality."
Under the agreement, the new broadband offering will consist of a special edition of the AOL client with its popular content and features optimized for broadband that is combined with Road Runner's high-speed connectivity and its content. This new offering will provide unlimited broadband access as well as 10 hours of dial-up connectivity monthly. Once installed by Time Warner Cable, the new offering's client will be available on the computer desktop and the AOL.com portal will be set as the default home page.
America Online will also manage and sell advertising and search inventory for both the new offering and Road Runner.com. In addition, AOL will be able to provide commerce opportunities and premium services to the subscribers of the new offering and Road Runner.
America Online and Time Warner Cable will work together to migrate existing AOL and Road Runner subscribers and prospects to the new offering as their lead broadband offer. America Online will market to its current narrowband members, while Time Warner Cable will target Road Runner subscribers. The two will coordinate their marketing efforts to sign up prospects. The new offering is expected to roll out across Time Warner Cable's footprint over the next several months.
Pricing will vary according to connectivity speed, and a number of price points will be tested in the initial rollout market; however, pricing will be set with the goal of driving share while maximizing profitability.
Time Warner Cable will manage the subscription billing and customer care for its services and provide a share of the subscriber revenues to America Online. For its part, America Online will provide a share of its advertising, search, commerce and select premium services revenues to Time Warner Cable.
The Road Runner service will continue to be available on a stand-alone basis to subscribers who elect not to take the new offering. To enhance the Road Runner subscriber experience, America Online will provide programming and functionality ( on both a branded and white-label basis ) - such as broadband content and enhanced communications features. Time Warner Cable customers who currently receive broadband service from an ISP provider other than Road Runner or AOL will not have their service affected.