Struggle for A Strategy

It looks like Parsonns and company at AOL are struggling to come up with a good strategy, other than simple cost cutting.

Whether America Online delivers will depend on the success of several initiatives. It has tried to boost subscriptions by making the Web sites of Time Inc. magazines such as People, InStyle, and Entertainment Weekly available only to America Online customers. It also has begun offering video concerts of music artists such as Limp Bizkit.

I just don't think focusing on content will cut it. No one is going to choose AOL over some other ISP just so they can view People magazine online. They will just get People at the grocery instead. Many people still prefer to read hard copies anyway. They should have used their first mover advantage to become the low cost leader, but instead they thought people would pay the higher margins for premium content. I doubt they will ever fully recover. Internet Access is now a commodity.

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