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AOL Battens Down Hatches in Preperation for Huge Layoffs

Ryan Whitwam — Tue, 10 Nov 2009 19:21:26 -0600

Things aren’t looking great for AOL as it is in the process of shaking Time Warner loose. The once dominant internet company has announced that 100 layoffs will be happening soon. After that AOL plans to ask for voluntary departures, possibly with some sort of buyout system. If that doesn’t produce the desired results, employees can expect heads to roll.

In an earnings call last week, Time Warner reported that AOL revenues were down 23 percent from last year. Sources say that those figures mean AOL will need to cut about 1000 jobs through various means. The larger layoffs could coincide with AOL’s departure from Time Warner. It will be a rough holiday season for some AOL employees. It almost makes you miss the golden age of the free AOL disk.

65,000 Time Warner Customers Exposed to Vulnerabilities

Paul Lilly — Wed, 21 Oct 2009 08:55:36 -0500

Yikes - it was discovered that a vulnerability in a Time Warner cable modem and WiFi router being used by 65,000 customers makes it possible for a hacker to remotely access the device's administrative menu and wreak havoc, To deal with the problem, Time Warner said it hopes to have updated firmware from the router manufacture to push out to customers soon.

"We were aware of the problem last week and have been working on it since," said Time Warner spokesman Alex Dudley.

The security snafu affects Time Warner's SMC014 series combo modem/WiFi router and was discovered by blogger David Chen, who writes for chenosaurus.com. Chen said he was trying to help a friend change the settings on his cable model when he discovered Time Warner had hidden some admin functions using JavaScript code. All he had to do was disable JavaScript in his browser and he could see those functions, including a tool to dump the router's config file displaying the admin login and password.

"From within your own network, an intruder can eavesdrop on sensitive data being sent over the Internet and even worse, they can manipulate the DNS address to point trusted sites to malicious servers to perform man-in-the-middle attacks," Chen wrote on his blog. "Someone skilled enough can possibly even modify and install a new firmware onto the router, which can then automatically scan and infect other routers automatically."

Time Warner said it is working to find out if the same or a similar vulnerability also affects other models.

Image Credit: SMC via Wired.com

Time Warner is Looking to Spin off AOL – Can it Survive on its Own?

Justin Kerr — Sun, 03 May 2009 00:26:26 -0500

Business schools around the world often study the January 2000 merger of Time Warner & AOL under the headline “Worst Mergers In American Corporate History”. It is not unusual, or unnatural for content creation companies to enter the distribution market, but AOL and magazine publishing arm Time Inc. have dogged their parent companies earnings for years now. Looking to cut its losses, Time Warner announced on Wednesday that it was close to spinning off America Online, an acquisition that has cost the company more than $100 billion in shareholder value.

According to the filing; “Although the company’s board of directors has not made any decision, the company currently anticipates that it would initiate a process to spin off one or more parts of the businesses of AOL to Time Warner’s stockholders, in one or a series of transactions.” When asked about the future of Time Warner, CEO Jeffery L. Bewkes claims the future “may well include publishing” but made it clear that this could change at any time. The company is likely holding out on making any decisions about Time Inc. until the recession eases and it can see if weakening print sales are a result of the recession, or the shift of its readers to online mediums.

Time Warner has already spun off it's cable division, and is clearly looking to focus on content creation, rather than delivery. I also can't help but wonder whether or not an independent AOL would become an acquisition target for Microsoft. The ad network was one of the primary drivers behind the Yahoo talks, and this is one area that AOL still does reasonably well in.

Can AOL survive on it's own? Let us know what you think.

Time Warner Really Needs to Hire a PR Guy

Andy Salisbury — Fri, 24 Apr 2009 19:35:47 -0500

Really, Time Warner? Do I need to take you, and sit you in a corner? Because it’s clear to me that you just can’t right any of your wrongs. This time, a boneheaded exec at Warner Music Norway decided to lash out against an 18-year-old Norwegian student, calling him (and I quote the translation) a “stupid brat.”

A young blogger, identified only as Evan, was reportedly upset about his inability to download the new Dave Matthews Band album on iTunes. However, he was quick to identify that his problem wasn’t present for those in the United States. So, like any self-respecting member of the Internet, he Tweeted his concern, by stating (again, this is an approximate translation), “'I’m pissed! iTunes is only allowing downloads of the new Dave Matthews Band album if you live in the US! And they complain about pirating.”

Without delay, Warner Music Norway’s Terje Pedersen was there to solve the problem with some quick, and effective customer service. Pedersen, responding in the standard tweet format, stated, “Then I suggest you steal it and write about the process in your stupid brat blog. We don't want you to get upset.” Pedersen is of course, referring to Evan’s blog.

Wow, well played Pedersen. Clearly the concept of acting your age is lost on you.

Image Credit: Twitter

Time Warner's Nefarious Plans Destroyed by Public Outrage

Andy Salisbury — Fri, 17 Apr 2009 17:08:17 -0500

Boy oh boy, what a tumultuous few weeks it’s been!

So, for those of you just tuning it, not too long ago the minds over at Time Warner Cable decided to experiment on placing diminutive bandwidth caps (as low as 1GB/month!) on not only their customers in Texas, but others as far out as Rochester, NY.

But, after much public uproar, Time Warner’s own Cable Chief Operating Officer took it upon himself to repeal the negative press by writing an open letter to all of Time Warner’s customers, as well as others interested in the matter. His claim was simple: providing the Internet gets costly, and without capping the bandwidth hungry beasts that broadband users turn out to be, it’s just not going to work out in the long run! Still, the public outrage wasn’t quelled.

And, now, thanks to the power of the geekerati, the absurd bandwidth caps at Time Warner have been completely removed. Ultimately this uncapping could be temporary, because, in their own words, Time Warner states that they are holding off on the trials “while the customer education process continues.”

Sounds mighty condescending to me, but at this point, a win is a win.

Image Credit: Time Warner Cable (again)

Time Warner Thinks The FCC Shouldn't Worry So Much About Net Neutrality

Andy Salisbury — Thu, 16 Apr 2009 16:34:15 -0500

Oh, Time Warner. When you’re not imposing some ridiculous bandwidth caps on your customers, you’re fighting for them in the war against net neutrality! And, while the road to hell is paved with good intentions, it’s nice to know that Time Warner Cable might actually have some.

“Now is not the time, nor is this the appropriate proceeding, to engage in a debate about the need for net neutrality obligations,” two Time Warner lawyers said to the FCC earlier this week. “Debates in this proceeding about new net neutrality regulations would only divert attention from these important goals, delaying the distribution of funds while generating considerable contention when the Commission should instead be fostering a spirit of collaboration.”

According to the two lawyers, the money should strictly go towards broadband deployment. This, in turn, would give them more customers (for them to impose miniscule bandwidth caps upon), and, according to their logic help pump some more of that much needed money into the ailing economy.

Image Credit: TIme Warner Cable

Viacom Squabble Sees Time Warner Promoting Web TV

Paul Lilly — Thu, 01 Jan 2009 11:45:55 -0600

Watching Viacom and Time Warner go at each other is like watching a divorced couple trying to push each others' buttons. But instead of alimony or child support, Viacom wants Time Warner to cough up more cash for its 20 channels, including MTV, Nickelodeon, and Comedy Central. If Time Warner doesn't agree, Viacom could pull all of its channels, and to drive the point home, the media conglomerate has taken out full page ads in Times and other publications showing Dora the Explorer crying because children won't be able to watch her show. Well played.

But if you think that's hitting below belt, Time Warner plans to fire back with what amounts to a slap in the face.

"We will be telling our customers exactly where they can go to see these programs online," said Alexander Dudley, a spokesman for Time Warner Cable. "We'll also be telling them how they can hook up their PCs to a television set."

Yes, this is the same Time Warner who has been testing out metered bandwidth in certain markets earlier in the year, and has been charging an overage fee for $1/GB in those test markets after a two month grace period. Now the cable company will be encouraging its subscribers to use more bandwidth by setting up HTPCs and logging into sites like Hulu.

At least, that's the plan for the time being. Something tells us we haven't heard the last of this dispute. But if Viacom and Time Warner do actually break up, just remember, it's not your fault.

Everyone Wants to Buy Yahoo, Nobody Wants to Buy AOL, Reports Captain Obvious

Chris Moody — Thu, 17 Jul 2008 07:13:52 -0500

And is there any wonder? Time Warner has been in talks with both Microsoft and Yahoo about selling off its AOL unit through out this year, but both companies have been much more interested in each other than the crumbled remains of AOL. Time Warner has showed a renewed interest in a deal and Microsoft and Yahoo continue to listen, but neither company appeared to be especially interested.

The NYTimes.com quotes Richard Greenfield, an analyst who covers Time Warner for Pali Capital, “I don’t see why anyone would make a move now with all the pieces on the chess board where they are,” he said. He adds that Time Warner was in a bad spot because the value of AOL was declining. (Doesn’t everyone want dialup?) Its main business is now selling graphical display ads and that is under pricing pressure. Greenfield also says its brand has a “toxic” connotation with consumers. The company does not even use the AOL name when it starts new web sites.

From its days as the evil empire of dialup companies, they earned the nickname ‘AOHell’. The company seemed to lack firm direction, buying various companies with no obvious connection to their business and often ruining them in the process. Perhaps the most famous of these is ICQ. The most popular IM program of the time was turned into bloatware, which quickly sank out of sight. Don’t even get me started on Netscape. AOL entered the portal ring way late and had already bled dialup users seeking the freedom of the internet compared to AOL’s own internal version of it. The company has been aimless and with its almost necrotic touch, is it any wonder consumers find the brand toxic?