Companies will develop customized broadband for AOL and Road Runner subscribers.
Time
Warner Cable and America
Online have announced a
strategic partnership to develop and market a customized broadband offering for
their current AOL and Road Runner subscribers as well as future prospects via
the Time Warner Cable footprint. The agreement also gives America Online the
lead on managing the advertising and search opportunities for both the new
offering and the Road Runner portal.
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."
Under the agreement, the new broadband offering will include a special
edition of the AOL client 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. Upon installation 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.
Jonathan F. Miller, America Online's chairman and CEO, stated: "By
working closely with Time Warner Cable, we're making it easier for our customers
to enjoy the best of AOL'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 CEO of Time Warner Cable, noted: "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."
The two will combine their marketing efforts to sign up new customers,
and 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 the companies said a number of price points will be
tested in the initial rollout market. 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.
