Current Event # 1

AOL to Sell Movies, Shows Through Portal

AOL is about to introduce a large expanded online video area. They are doing this to attract more people because there are people rapidly declining subscription services. AOL has been a leader in producing video programming. The new service, which will begin public testing on Friday, adds a range of new free programs. For the first time it will also sell commercial-free downloads, competing with Apple Video.

AOL will sell downloads from other large programmers, including MTV Networks, A&E Networks and Warner Brothers. MTV will sell full-length programs like "Pimp My Ride," "South Park" and "SpongeBob SquarePants," which will be available for $1.99 the day after they are broadcast. MTV, which is owned by Viacom recently sold more than 1 million "South Park" episodes through Apple’s service. Two other popular Viacom programs, "The Daily Show" and "The Colbert Report," will not be offered until the fall, when AOL expects to introduce software that will allow it to sell subscriptions to video programming.

The company’s research showed that users wanted free and paid programming: "Consumers said loud and clear, "I don’t understand why I have to go one place to watch stuff with ads and another place for download-to-own stuff. Can’t someone provide me with all my choices in one place?" Will Richmond, the president of Broadband Directions said, "Of all the portals, AOL has been the most active in launching video programming on the Internet," "They have significant media skills."

Aol is selling movies and shows through portal- click here for the article