You've Got Music: AOL to Release New Media Player

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.betanews.com/article/AOL_Fine_Tunes_New_Media_Player/1102621903' target='_blank'>http://www.betanews.com/article/AOL_Fine_Tunes_New_Media_Player/1102621903</a><br /><br /></div><i>"AOL Music is ramping up its efforts to release a new Media Player independent of the AOL client software, with a long-term goal of building its own music store. While a beta release is currently only available to AOL members, sources tell BetaNews the company plans to bring AOL Media Player (AMP) outside its "walled garden" to expose new users to AOL content and services."</i><br /><br />Despite AOL's declining subscriber base, they still represent a large group of consumers and have considerable power to influence the market - especially if they make buying and listening to music even easier for their subscribers. I can't, however, see general Web users coming to AOL to buy their music...unless they have a unique offering that others companies don't.

[Felix Torres]

Actually, they already have all they need to make a nice and profitable store; a brand, the in-house back-end, and at least three promotional "funnels" they can tie into; AIM, ICQ, and the walled-garden of America Online.

Given their Time-Warner connections and past links to BMG they probably have the connections to negotiate some nice exclusives to get some extra attention, but the basics alone can carry them. And don't forget they have access to both MS and Real technology. Plus in-house streaming efforts.

Nothing is guaranteed in the digital music business this early in the game but AOL can easily jump into the top 5 overnight and give Napster and MS a real run for the top spot in the longer term, say 3-5 years.