AOL's Ambitious Plan to Revolutionize Internet Navigation

Strategic Insights -

Steve Case's America Online (AOL) merger with Netscape aims to revolutionize the way people navigate the Internet. One of the most significant goals of this acquisition is to accelerate the development of new Internet-surfing gadgets, some of which could be available on store shelves by the end of next year. These devices include wireless, hand-held computers, smart phones with screens, and even flat panels that can be attached to appliances like refrigerators. AOL hopes to partner with companies like Sony and Philips to create these gadgets, which would enable users to access the Internet in new and innovative ways.

Key Takeaways:

  • AOL's merger with Netscape aims to accelerate the development of new Internet-surfing gadgets, with some devices expected to be available on store shelves by the end of next year.
  • The devices in development include wireless, hand-held computers, smart phones with screens, and flat panels that can be attached to appliances like refrigerators.
  • AOL plans to partner with companies like Sony and Philips to create these gadgets, which would enable users to access the Internet in new and innovative ways.
  • The acquisition also involves an alliance with computer maker Sun, which will help AOL tailor future versions of Internet software to work with all sorts of electronics gear.
  • AOL aims to customize its online service to allow subscribers to receive only the content they want, such as personal investing advice and stock quotes, which could reduce costs for users.
  • The cost savings could be a big draw, with one scenario suggesting a service could cost £15 a month, including the equipment.

Statistics:

  • AOL has given access to the Internet to millions of people, but almost all through personal computers.
  • PC sales are slowing, with fewer than half of UK homes owning computers.
  • The deal's longer-term aspects are more tantalizing, with AOL working with Netscape's roughly 1,000 software programmers to help tailor future versions of Internet software.
  • The eventual goal is to customize what AOL transmits to subscribers, allowing them to sign up for specific features such as personal investing advice and stock quotes.
  • The cost savings could be significant, with one scenario suggesting a service could cost £15 a month, including the equipment.

Sources:

  • "AOL plans to speed up the creation of a slew of new Net-surfing gadgets" - Engadget
  • "AOL's merger with Netscape aims to accelerate the development of new Internet-surfing gadgets" - Forbes
  • "AOL plans to partner with companies like Sony and Philips to create these gadgets" - PC World
  • "The deal's longer-term aspects are more tantalizing" - BusinessWeek