Time Warner plays up the beta launch of its public portal, particularly its runaway success with Live 8.
Time Warner's AOL unit lost nearly a million subscribers last quarter, around four percent of its total base. Ad revenues, however, were up 45 percent to $320 million.
The company said it set aside $3 billion to settle shareholder litigation over its disastrous merger with the online unit.
AOL brought in total revenues of $2.1 billion, down from $2.2 billion for the year ago period, as dial-up subscribers over age 15 fled in droves. The positive news on the advertising front was earnings of $30 million from paid search and $60 million from its Advertising.com unit.
Executives repeatedly referred to the beta launch of the public AOL.com portal in June, as well as its breakaway success with the Live 8 concerts.
"AOL is positioning itself to take advantage of the same broadband trends that are currently benefiting cable," said Chairman and CEO Dick Parsons. "Live 8 demonstrates how large audiences are starting to use this medium. "
Presumably based on its success with Live 8 last month, the company estimates the streaming event on-demand audience can be five to 10 times larger than Live 8's. MSN execs have made similar remarks about the power of live event streaming online.
Parsons added, "Although it's still early days, we have every reason to be optimistic that this audience-driven strategy will be very successful."
AOL's AIM instant messenger platform continues to grow. Execs called it an important channel for audience growth across all its properties. The company wants to improve its ad sales operation across its whole network with the goal of raising CPMs on all its sites to the higher level AOL-branded sites currently command.
Total revenues for Time Warner declined one percent to $10.7 billion, and the company reported a net loss of $321 million, or $.07 per share.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.