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Time Inc. Considering AOL Exclusivity Deal

WSJ: America Online May Charge For Content From Time Inc.
Slashdot: Time Warner Properties May Only Be Available Through AOL

In a vote against the advertising supported online publications idea, we find the idea of cutting off all Time Inc. websites to the general public interesting.

The discussions so far have looked at core subject areas such as lifestyle, teens and celebrities. That means chunks, if not all, of Time Inc.'s Entertainment Weekly, People and Teen People magazines could be taken off the Web and reserved exclusively for America Online's 35 million subscribers. Over time, more categories are likely to be added and within a year, executives say, much of Time Inc.'s current Web publishing might be exclusive to America Online. [..]

If all the elements are put in place, Time Inc. will become a leader among those who say that publishers should stop giving away their content on the Web. At the height of the Internet boom, executives assumed they needed to put most of their content online to boost readership and benefit from online advertising. But Time Inc. has concluded that its free Web sites hurt circulation and Web-based advertising is too meager to make up the difference.

If Time Inc. does follow through, this will be a major move in the direction of 'syngergy' between AOL and Time that hasn't really been seen up to this point, but at what cost to the two units? Will there be a public backlash?

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