theorganisation.com

From, Matt Pressman Vanity Fair.

AOL went from pioneering powerhouse to laughed-at laggard when changing technologies made their business model of charging people for e-mail accounts and Internet access obsolete. So now they are remaking the company with an entirely different strategy: selling ads against original content produced by an army of well-paid professional journalists. Unfortunately, that’s the same business model that has driven America’s newspapers to the brink of ruin.

When most people think of AOL, they think of it as the e-mail provider for people who aren’t with it enough to switch to a free service such as Gmail. But while the bulk of AOL’s revenue still comes from its old-school subscribers, the company’s future is in the content business (with a sideline in social networking). In advance of its long-awaited split from Time Warner, which will occur next month, AOL has been on a hiring-and-acquisition spree. It now owns upward of 75 niche blogs and news sites, including DailyFinance.com, Engadget.com, and Fanhouse.com, staffed in large part by reporters who used to work in print. C.E.O. Tim Armstrong said at a conference last month that AOL employs more than 3,000 journalists.

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