Time Warner to Detail AOL Plans on Aug. 2

Time Warner on Wednesday said it will detail a revamped strategy for its AOL Internet unit on Aug. 2, along with the release of its second-quarter financials, Bloomberg News reports via Boston.com.

AOL has struggled in recent days with subscriber loss and shrinking revenue.

Richard Parsons, AOL chief executive officer, is attempting to stem some of that customer defection and boost revenue by converting the firm’s large base of dial-up subscribers to high-speed or broadband services, Bloomberg reports.

Last week, a number of media outlets reported that part of AOL’s strategy to retain its customers could be to offer a free broadband service. Such a service could end up costing AOL some $1 billion in profit, according to The Wall Street Journal.

Edward Adler, a Time Warner spokesman, told Bloomberg that various media reports in relation to a possible free AOL broadband service included false or misleading financial information, but said he would not comment further until Aug. 2, when the company’s financial results are released.

AOL lost some 835,000 subscribers in the first quarter of 2006, and its operating profits dropped by 17 percent.

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