AOL begins video service

September 19, 2006|By Bloomberg News

NEW YORK -- AOL, Time Warner Inc.'s Internet unit, and Intel Corp. started an online video-on-demand service yesterday that lets users watch films, concerts and sports programs on their television sets.

The service allows users to search for videos available on AOL with a TV remote control, said Kevin Conroy, executive vice president at AOL. Personal computers based on Intel's Viiv semiconductors and software will make it easier to search, record and watch music and video files.

"The partnership with Intel enabled us to bring this experience to the living room," Conroy said in an interview, referring to watching videos online.

AOL is seeking to add revenue from online advertising and other sources to compensate for a decline in subscribers to its Web access service.

With its Viiv product, Intel, the world's largest semiconductor maker, is trying to create a new market for computers to offer home entertainment services and to stay ahead of rival Advanced Micro Devices Inc.

Users of the new service will have access to AOL's 45 channels of online video programming, which include shows such as MTV's Jackass and TNT's Family Guy. A revamped video search function will also let them browse through millions of videos that are posted on the Internet.

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