Time Warner Mulls Pros, Cons to Free AOL Plan

NEW YORK, July 11: Time Warner expects its AOL division to
lose some $1 billion in operating profits through 2009 should it go ahead with
a proposed plan to offer free Internet access to some customers, according to
the Wall Street Journal.

AOL subscription revenues of $1.6 billion this year would
fall to about $800 million in 2009, the report said. Citing internal company
forecasts, the Journal also noted that
Time Warner is anticipating an Internet advertising increase that would
partially offset the fall in subscription revenue.

The Time Warner board is expected to evaluate the plan at a
board meeting at the end of this month.