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AOL Readies New Video Site

By: David Utter

The company has integrated its Truveo video search purchase with the new video portal, and also gave some front page space to "community videos" uploaded by visitors to the site.

AOL May Give Away Its ServicesAOL Video has been scheduled for a Friday launch. AOL (TWX) has a number of new video-on-demand channels planned for the debut. They also plan to make some full-length content available for purchase and download; that content will be viewable on multiple devices and PCs.

AOL's Christmas present to itself in December 2005, the Truveo video search engine, finally becomes integrated with AOL Video. The search technology proved so enticing to AOL that they bought the company only three months after its beta launched publicly.

The video uploading community represents a hot trend that AOL, with its focus on "audience-driven" revenue streams, wants to embrace. YouTube has become an Internet phenomenon with its rise to thousands of uploads and video viewings taking place every day.

AOL has numerous advertising options that it will make part of the new video portal. A viral video contributed by an uploading user to AOL UnCut Video provides a dual payoff; there is a minimal cost associated with hosting that video, and no substantial cost to obtain it, while the viral popularity will bring in plenty of viewers who can be counted as ad impressions for each page load.

It has been over a year now since AOL shifted from its subscription-protected content model to making nearly everything available for free online. The potential for earning more substantial revenue from advertising, while paring the hefty costs of customer support for subscribers, has been the glittering prize on AOL's horizon.


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