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AOL's '03 Resolution: Get On Growth Path Online Service Lagging Ad revenue is falling off, and subscriber growth isn't what it used to be.(A)

Investor's Business Daily

| January 03, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DOUG TSURUOKA

2002 began sourly for AOL Time Warner Inc.

Last January, the media giant's share price was in the dumps and growth at its online unit was stalling. From there, it only went downhill. Online ad revenue plunged, there were management shakeups and questions emerged about AOL's accounting.

By year-end, Chief Executive Richard Parsons unveiled a major plan for turning around the online unit.

It involved using exclusive content from AOL's other media properties and better technology to create an Internet service for which consumers would willingly pay more. Still, analysts and investors remained skeptical that AOL was poised for a comeback.

"We're all committed to getting this thing done," Parsons said at a New York meeting.

Not everything went wrong at AOL Time Warner in 2002. Its film business did well, thanks to blockbusters like "Harry Potter."

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