Are AOL’s moves ‘bold’ or desperate?

Steve Safran August 6th, 2006

The Sunday New York Times characterizes this week’s announcements by AOL as “bold.” The company is offering its service free to broadband users and is laying off a quarter of its staff. In the article, “For Big Media Players, Bold Moves Are Back,” Richard Siklos writes that the AOL plan “reflects a new kind of audaciousness” and he likens it to recent aggressive moves by Rupert Murdoch. May I suggest the two companies’ moves are not even close? AOL is acting in desperation, not out of vision. It would not be giving away its service if it didn’t have to. News Corp. is building upon an existing brand with its acquisitions and rollouts. Rupert Murdoch - like him or not - takes big risks. AOL has no other choice. (Free reg. req.)