Skip to main content

AOL Promises New Service Launches

USA Today reports that America Online plans to roll out major new services over the next few months to help it compete in key Internet battlegrounds � taking on teen-networking site MySpace, voice powerhouse Skype and others, CEO Jonathan Miller said in an exclusive interview.

Some of the plans, such as building a MySpace-style network onto AOL's market-leading instant messaging service, have not previously been made public. AOL is trying to keep pace with chief rivals Google, Yahoo and Microsoft as it shifts from a subscriber model to an advertising strategy, Miller says: "Job One is to make sure we're part of that group."

"It makes perfect sense," says Charlene Li, analyst at Forrester Research. "The key is making a strong link with AOL Music. Part of the reason MySpace works so well is it has music." AOL has long talked about using AIM as a hub, says David Card, analyst at Jupiter Research. But as AOL struggles to win respect and ad dollars, he says, executives "just need to do it."

Popular posts from this blog

When AI Spending Reaches $3.6 Trillion

Enterprise AI budgets are flowing in two directions at once, and only one of them builds an asset the buyer actually controls. Gartner's latest forecast puts worldwide AI spending at $2.7 trillion in 2026, but the composition of that figure matters far more than the total. Executives who read only the headline will miss the tension between what they are buying and what they actually own. The Number Behind the Number Gartner projects 2026 AI spending is a 49.5 percent increase over 2025, with $3.6 trillion forecast for 2027. AI infrastructure accounts for $1.5 trillion of this year's total, more than half. Gartner's John-David Lovelock calls the data center buildout the largest infrastructure project humanity has undertaken, and describes demand as inelastic even as memory prices climb. Compute Concentration is a Sovereignty Issue Gartner expects hyperscalers and service providers buying AI-optimized servers to remain the largest single area of spending. For an enterprise, t...