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AOL Expands Video Service, Sells Shows Online
By the middle of this year, American Online will try to secure a place in the market for video-on-demand over the internet by selling programming on its website, writes Reuters.
To compete with Apple Computer Inc.‘s success with iTunes’s online video service, AOL will respond to complaints about iTunes’s rigid pricing and video mix by offering pay-per-download and free shows from established programmers and user-created video clips.
Analysts are skeptical of AOL’s pay-per-download model, arguing a traditional advertising model would be better.
The online video store is part of a redesign of an existing video on-demand service from AOL.com and will appear gradually.