July 23, 2001, 1:46 PM — America Online Inc. (AOL) today announced an expansion of its online music offerings, including special services for users with broadband Internet access.
AOL said in a statement that it would incorporate Internet radio into its client software and add a service that allows users to look up information about artists, play CDs and download music. The new services add to AOL's existing online music services, which include Web radio service Spinner and music player Winamp.
AOL, part of AOL Time Warner Inc., said it has enlisted several record labels, including its own Warner Brothers Music Group Inc., to power a service dubbed AOL Artist Discovery Network, which, among other features, offers localized pages and a database with artist information. The Artist Discovery Network is available starting Monday.
With the Artist Discovery Network the company is "creating an audience for new and emerging artists who are generally underserved in traditional media," said Kevin Conroy, senior vice president and head of AOL Music, speaking at Jupiter Media Metrix Inc.'s Plug In conference in New York Monday.
Conroy noted that artists will be able to tap into AOL Music Channel's expansive audience, which totalled 23 million unique users in June, according to a report released Monday by Jupiter.
Radio at AOL (Radio@AOL), a new online radio service with over 50 channels of news, information and entertainment, will be online in the third quarter, AOL said. A button to access the service will be on the toolbar in AOL 7.0, the upcoming version of AOL's client software.
Mimicking the services offered by Launch Media Inc., an online media company that was recently acquired by AOL rival Yahoo Inc., AOL said it will launch later this year customized music services for users with broadband Internet connections. These services will include a radio feature that can be customized and a music recommendation tool.
Besides offering broadband customers something extra, Conroy said that AOL's music offering will push people to want to have broadband if they don't already.
All of AOL's online music services will have storefronts. Users will be a click away from concert tickets and paraphernalia, AOL said.
AOL will also offer access to MusicNet, the digital music service being developed by BMG Entertainment Inc., RealNetworks Inc., EMI Group PLC and AOL Time Warner's Warner Brothers Music Group Inc. MusicNet, scheduled to launch in the third quarter of this year, is headed by Rob Glaser, chairman and chief executive officer (CEO) of RealNetworks.
The new offerings are part of AOL's new music strategy that includes radio, increased promotion, an enhanced AOL Media Player and the subscription service provided by MusicNet, Conroy said.
When asked if AOL would also consider cutting a deal with nascent subscription service Pressplay, Conroy acknowledged that it was a possibility, saying that "the door remains wide open to negotiate partnerships."
Conroy added that discussions of including Sony Music Entertainment Inc. and Universal Music Group Inc.'s Pressplay, had already taken place.
But while signing up more subscription partners may be a while off, one thing is for sure when it comes to AOL's current music strategy: "We will give users many opportunities and reasons to buy music along the way," Conroy said.
AOL Time Warner, in New York, can be contacted at +1-212-484-8000 or found online at http://www.aoltimewarner.com/.
