AOL's "Sticky App" Crusade Continues
Clipped from Raging Bull...
ragingbull.com
"I'm not particularly surprised that AOL decided to
snatch up Spinner. Frankly, I expected someone like
AOL to make the move sooner. Back in the March
28 Cyberstock, I suggested that "perhaps AOL's
master marketer Bob Pittman will decide to snatch
up Spinner.com and package Spinner Plus in
downloads with ICQ and AOL's Instant Messenger." I
also wondered aloud if Yahoo would care to
double-dip in the streaming media/online music
space. AOL obviously ended up the proud parent,
but Yahoo did announce an agreement with Spinner
last month to provide audio programming and
technology for Yahoo Radio. You can rest assured,
however, that with Spinner now becoming a part of
the AOL family, the Yahoo Radio-Spinner deal is
history. Sorry Yahoo, AOL beat you to the punch."
"The media was also buzzing with discussion this
week that AOL's purchases suggest it is getting
back into the business of owning its own content.
Wrong. Try Again. I believe the two deals were
largely done for AOL to acquire additional sticky
desktop applications and millions of captive
eyeballs. Both services directly compliment AOL's
existing AOL Instant Messenger and ICQ instant
messaging applications. I expect to see significant
cross promotion in the coming months between the
growing stable of sticky aps that AOL has acquired.
Just as important, both of these deals give AOL
leading gateways between the user and the delivery
of digital music. Once encryption standards are set,
I believe AOL has the potential to skim substantial
downloadable music revenue from both the WinAmp
player and Spinner Plus player."
"Finally, these purchases give AOL two ideal
broadband applications to serve as promotional tools
for its AOL Plus broadband service. I continue to
maintain that the major cable players will eventually
come to the table and do business with AOL. They
can't ignore AOL's industry leading 19 million
members if they hope to achieve mass-market
penetration. AOL's acquisition of broadband
applications like Spinner and WinAmp fit nicely into
its recent high-speed satellite and DSL deals, as
well as its cable plans. When the cable companies
finally wake up to reality, AOL will have the sticky
broadband applications to help back up its incredible
marketing muscle. I still believe AOL should cement
its position in the streaming media space by
snagging streaming media leader RealNetworks
(RNWK). Although, RealNetworks Chief Executive
Rob Glaser seems convinced that he can fight and
win the streaming media battle with Microsoft by
himself. We shall see."
Best O'Luck
Tom |
