There’s lots of speculation on what the soon-to-be independent AOL should do to drive user and revenue growth, and stay relevant in a world dominated by Google, Microsoft and Facebook. New CEO Tim Armstrong says he’s taking some time to take input internally and create a plan.
But some sources we’ve been talking to say that there’s a real push to remake AOL into an online media powerhouse – one that will rise just as the print media world is falling apart.
There are some real assets. First is that dial up business, which still brings in around $1 billion in free cash a year. The business is deteriorating rapidly, but it will bring in real cash over the next 18-24 months before it peters out. The company also has a social networking base with Bebo and AIM, and integration of those services into other AOL properties and third party sites continues.
But the real opportunity for AOL is to grab marketshare in a relatively open field, say some people close to the company. A contingent of AOL executives are said to be pushing Armstrong to embrace what I’ve heard is called the “Toyota strategy” by building and buying scores of great online media brands. AOL is the “Toyota” and the media brands are like the many car models that Toyota successfully pushes – Highlander, Camry, Pious, etc. The analogy isn’t perfect, but it gives you a good idea of how they’re thinking of organizing things.