As part of its new strategy, AOL is also turning the heat up under its bring-your-own-access Internet service, as well as pushing wireless offerings.
"This emerging multiband world creates challenges and staying in this game means rethinking (our strategy)," Miller said.
AOL plans to pitch its $14.95 a month stand-alone service through a series of new partnerships with cable and DSL (digital subscriber line) providers.
"We are moving away from connectivity and toward marketing," said AOL Broadband President Lisa Hook.
Marketing may be a new frontier for AOL, but advertising remains a thorn in the company's side. Earlier Tuesday, AOLTW announced that it expects steep declines in its AOL commerce and ad revenue for 2003.
"2003 is the year we bottom out," Miller said about the company's ad revenues, predicting a 15 percent to 25 percent year-over-year decline.
"Advertisers are demanding much more than just buttons and banners," Miller said.
To strengthen its ad business, the company said that it will improve its relationship with advertising partners, offering them more responsive services.
AOL is also hoping to reduce its reliance on ad revenues by launching a host of new premium services, including a forthcoming voicemail service.
"We are investing aggressively to develop new premium services," Miller said.
To do this, Miller said the company will be cutting costs and will halt any new country launches until "a viable economic model is in place." However, he did say that the company's European operations are gaining strength and "on the path to break even."
The ISP is also looking to retool its image, which has been both tarnished by government probes into its accounting practices, and shaken with unfulfilled promises to investors.
"AOL has suffered from the impression of being long on ambition and short on integrity. That ends now," Miller said.
As part of the company's image-bolstering campaign, AOLTW Chairman Steve Case is posting a letter for AOL members Tuesday, asking them to send in their complaints about the service.
"Our New Year's resolution is to fix every one of those problems," said Ted Leonsis, vice chairman and president of AOL's Advanced Products Group. "We are a humbled company," he added.
Despite the company's optimistic predictions, shares of AOLTW (AOL) dipped 12.25 percent to $14.54 in afternoon trading Tuesday.
