AOL Places its Bets on Lucky 7

Although it is not bristling with changes –- representing nothing more then an evolutionary step in the development of the client -- AOL 7.0 formerly code-named "Taz" has been officially released. As first reported by BetaNews, AOL shied away from implementing drastic changes to its software for fear of leaving users behind and open to seeking alternatives such as Microsoft's MSN. A number of cosmetic changes and enhancements to popular features including e-mail, My Pictures, instant messaging, and AOL Media Player are the mainstay of AOL 7.

In addition, a Web services push been made, providing customers with additional incentive to stick with their provider. A built-in radio service known as Radio@AOL, and AOL Box Office -- a ticketing agency for tickets of all kinds -- have been introduced. This release comes at the heels of a trial version of MSN 7 and the imminent launch of Windows XP.

Aside from simply receiving cosmetic improvements AOL 7 has its advantages. Digital media was one area that was eyed for improvement. AOL Music has received a major boost in version seven with a new release of the AOL Media Player (AMP), code-named "Llama." AOL had previously been contemplating making use of its Nullsoft purchase, creating a version of AMP based on Winamp 3. The company recently held meetings to discuss the approach it will take with regards to Microsoft's upcoming Windows Media Player 8.0.

Not every planned feature made it past the cutting block. The much hyped Komodo browser engine did not find its way into the final release. Earlier this year, documents obtained by BetaNews revealed the company's intentions to unseat Microsoft's Internet Explorer as the client's default browser - a move that would act to spawn a frenzy of competition between the two Internet powerhouses.

Simply put, MSN 7 is targeted directly toward AOL users. As reported by eWEEK, a significant percentage of MSN subscribers are converts from competing services. Microsoft hopes to close the gap between its service and industry leader AOL by offering the right mix of content and services.

The .NET of it All

In a recent statement ringing in the release of MSN 7, Microsoft CEO Steven Ballmer did not shy away from plugging the company's much hyped Web services. "MSN 7 is exciting because it redefines what people can accomplish on the Internet today, while laying the foundation for future experiences and services through Microsoft .NET," said Ballmer.

AOL has taken steps to counter Windows XP, a release of Windows aimed at Internet services and media. In July, BetaNews broke the news on AOL's intention to roll out its own sign-in service known simply by the moniker "Magic Carpet". It has since undergone discharge from its testing phases, and is now known simply as "ScreenName". The service acts as a gateway to content and services that AOL and its partners wish to provide.

With ScreenName, AOL inches one step closer toward achieving of goal of its "AOL Everywhere" initiative. This move is bound to clash with Microsoft who favors its own brainchild, the Passport authentication system. Passport enables users to access the company’s .NET services – a key component of the company’s vision for the future. A host of new .NET services are set to launch on October 25th, in conjunction with the introduction of Windows XP. One service that Microsoft has planned will send user's alerts based upon their individual preferences. America Online has mirrored this functionality in AOL 7.

Broadband Stands as Battleground

Both companies are expected to continue their embrace of broadband with both AOL and MSN 7.0 offering up premium content to their users. BetaNews has learned that Microsoft plans to announce a partnership with Intertainer Wednesday, which ups the ante against rival AOL Time Warner. Intertainer owns a library of over 70,000 hours of premier films and television programming.

According to Yusuf Mehdi, Vice President of MSN, "MSN is furthering its commitment to deliver broadband to the masses by enabling millions of people to experience the best of the high-speed Internet through advanced technology, nationwide availability and excellent promotional offers."

On the other side of the coin, AOL has taken measures to ensure its own future.
Underscoring the company's commitment to its high bandwidth efforts Audrey Weil, President of AOL Broadband stated, "Through our AOL Time Warner assets and hundreds of other content partnerships, we're able to offer AOL members the richest choice of convenient, entertaining, and informative audio and video content anywhere, built right into the easy-to-use service."

As each company rallies its troops to face off against the other, one safe bet is that the once coveted partnership between the two tech giants will quickly fade into the distant past.