This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7546357.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Time Warner set for AOL shake-up | |
(1 day later) | |
Time Warner has prepared the ground for a major shake-up of its struggling internet business AOL after it saw a steep decline in subscriber numbers. | Time Warner has prepared the ground for a major shake-up of its struggling internet business AOL after it saw a steep decline in subscriber numbers. |
The media giant said it had taken steps to separate AOL's content and access operations from early next year. | The media giant said it had taken steps to separate AOL's content and access operations from early next year. |
Experts believe this could pave the way for one or both of them to be sold. | Experts believe this could pave the way for one or both of them to be sold. |
Notice of the planned changes came as Time Warner reported a 28% fall in second-quarter profits but said it was "pleased" with its performance. | Notice of the planned changes came as Time Warner reported a 28% fall in second-quarter profits but said it was "pleased" with its performance. |
Subscriber drift | Subscriber drift |
The firm's advertising-funded businesses are suffering from the economic downturn which has hit all media businesses. | The firm's advertising-funded businesses are suffering from the economic downturn which has hit all media businesses. |
Ad revenues at AOL rose just 2% in the past three months as it struggled to compete against the likes of Google and Yahoo. | Ad revenues at AOL rose just 2% in the past three months as it struggled to compete against the likes of Google and Yahoo. |
AOL's subscriber base has shrunk rapidly since it decided to offer e-mail and other services free to all users and not just subscribers, instead focusing on boosting content to attract more advertising. | AOL's subscriber base has shrunk rapidly since it decided to offer e-mail and other services free to all users and not just subscribers, instead focusing on boosting content to attract more advertising. |
We have made the key decisions that will enable us to run AOL's access and audience businesses separately beginning in 2009 Jeff Bewkes, Time Warner chief executive See Time Warner shares | We have made the key decisions that will enable us to run AOL's access and audience businesses separately beginning in 2009 Jeff Bewkes, Time Warner chief executive See Time Warner shares |
Although AOL still has more than eight million subscribers, about 2.8 million have left over the past year. | Although AOL still has more than eight million subscribers, about 2.8 million have left over the past year. |
This depressed AOL's revenues by 16% and profits by 28% over the latest three-month period. | This depressed AOL's revenues by 16% and profits by 28% over the latest three-month period. |
Experts believe Time Warner could sell AOL's dial-up arm to internet services provider EarthLink while both Yahoo and Microsoft are thought to be interested in AOL's website operations. | Experts believe Time Warner could sell AOL's dial-up arm to internet services provider EarthLink while both Yahoo and Microsoft are thought to be interested in AOL's website operations. |
"We have made the key decisions that will enable us to run AOL's access and audience businesses separately beginning in 2009," said Time Warner's chief executive Jeff Bewkes. | "We have made the key decisions that will enable us to run AOL's access and audience businesses separately beginning in 2009," said Time Warner's chief executive Jeff Bewkes. |
Excluding exceptional items, Time Warner generated profits of $792m in the three months to 30 June, compared to $1.07bn a year ago. | Excluding exceptional items, Time Warner generated profits of $792m in the three months to 30 June, compared to $1.07bn a year ago. |
The success of the Sex and The City movie boosted sales at the Warner Brothers film studio by 14% while Time Warner's TV networks, including CNN and HBO, saw sales rise 9%. | The success of the Sex and The City movie boosted sales at the Warner Brothers film studio by 14% while Time Warner's TV networks, including CNN and HBO, saw sales rise 9%. |
But the weak advertising market hit the performance of its magazine arm, whose titles include Time and Sports Illustrated. | But the weak advertising market hit the performance of its magazine arm, whose titles include Time and Sports Illustrated. |
Previous version
1
Next version