AOL A Media Company? Get Over It!
from the it's-all-about-the-technology dept
An interesting opinion piece saying that AOL's problems stem from the fact that they haven't realized they're really a technology company, and not a media company. They act like a media company, and that's making them lose ground to companies that realize they're technology companies. As an example, the writer talks about how Amazon and Google have opened up their APIs so that other companies can use them. AOL, however, has kept its interface closed, and charge lots of money for companies to get access. The argument for doing this is clear: they want the money. But, the long term strategy is dangerous because it marginalizes AOL. Suddenly, it's less important to get tied in with AOL when you can do it for free with Google or Amazon. There are also a few other examples of where AOL has worked hard to remain proprietary due to their mindset as a media company, which is killing them on the technology side, and making partners and customers less willing to work with AOL.
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Go ahead and leave your services closed and protect your revenues. Just don't go crying foul when others come along and offer open services and you lose all your business.
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I guess the real question is how long can they hold onto that position by not being open. Once the tide turns, it's dangerous to be remembered as the player who kept everything closed when everyone else is enjoying the fruits of an open system.
My point is that the strategy you propose makes short term economic sense, but is dangerous long term strategy.
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You are right, this strategy may be dangerous in the long term but if they need to they can always open up if subscribers started jumping overboard in large numbers (doubtful).
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"Once the tide turns, it's dangerous to be remembered as the player who kept everything closed when everyone else is enjoying the fruits of an open system."
Indeed. One fine example comes to mind: Sony's Beta. And many to this day believe Beta is superior to VHS. But pretty much everyone - including their own subscribers - is in agreement that AOL sucks. America Online may have acquired a bazillion members through their carpet-bomb marketing, but do you know *anyone* who has finally left AOL who's sorry they did? I'd love to know what sort of membership churn goes on.
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Discrimination
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Discrimination
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