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AOL To Roll Out Video Service
Wednesday, March 15th, 2006 at 11:25 AM - by Staff
AOL plans to officially launch its own Internet-based video service called In2TV on Wednesday. According to Reuters, the streaming videos will be free, but will include commercials. Warner Bros. is providing programming from its library, including Welcome Back Kotter, Kung Fu, and Growing Pains.
Currently, four advertisers are lined up: - Intel Corp., Kia Motors Corp., Kraft Foods Inc., and Hershey Co.
Kevin Conroy, AOL's executive vice president, commented "The real volume of activity is in the free streaming (video) model."
Despite AOL's faith in commercial-based videos, the company is planning on adding a pay-per-download service similar to Apple's iTunes Music Store (iTMS) in the coming months. Video downloads are expected to cost US$1.99, just like the iTMS, and will require a special application to play.
AOL is also negotiating with other program license holders, including those beyond its parent company, Time Warner.
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