AOL Planning Paid Download Service
AOL will add paid video downloads to its Web site later this year, the company has confirmed to BetaNews. The new paid portion of the site would complement its pre-existing free service in hopes of cashing in on a booming market brought to life by Apple and its iTunes Music Store.
The paid downloads would be gradually introduced into a planned rework of AOL's online video on-demand service, the company said. Programming would come from Time Warner properties and other partners, and would sell for $1.99 USD per download. iTunes offers the the same pricing.
Eventually, the company plans to move to a variable price structure, which it hopes would entice programmers turned off by Apple's insistence on a standard cost for both video and audio sold through its iTunes service.
The Dulles, Va.-based ISP says its been in talks with "every" cable and broadcast network, although it would not say if any deals had been finalized. Users would have the choice of viewing the content on their home computers or on a portable device, as long as it supports Microsoft's digital rights management software.
Videos would not be viewable on the popular iPod due to Apple's resistance in allowing access to its FairPlay DRM technology.
AOL will make a service called In2TV available ahead of its paid download feature, the company said. Full-length episodes of popular programs such as Welcome Back Kotter, Beetlejuice, Lois & Clark, La Femme Nikita and Growing Pains will be offered through six content "channels."
15- and 30-second ad spots will be mixed into the video, but limited to 1-2 minutes of advertising for every 30-minute show. The videos would be free as long as the user agrees to share them through a P2P-like service using technology from Kontiki.
Videos would be recorded in AOL's new proprietary HiQ format, which combines P2P distribution with Windows Media technology.