So, Time Warner is going to shed AOL from its portfolio of media
properties. Big news in the media world and Wall Street alike. Like so
many other companies in 2000, TW over-estimated the value of
convergence as we knew it and subsequently took about $100 billion in
But, what nobody is talking about is that AOL
owns some valuable assets that can be leveraged into great brands. Just
not the AOL brand.
Whether we're talking about its remaining
Internet subscribers, its ad network business, or its social networks,
none of them can make it with an AOL label attached. For better or
worse, AOL means dial-up internet access to the general consumer. And
that's a horrible brand association in today's high-speed connection
But, a simple re-brand would do wonders for AOL's
assets. If the Coca-Cola brand alone (aside from hard assets) is worth
about $55 billion, the AOL brand is worth several billion less than $0.
AOL didn't do a lot wrong (except ignoring the open nature of the
Internet) to deserve a negative equity position for its brand.It just
got old, started too early, became antiquated - however you want to put
it. Nothing to be ashamed of. But, if AOL execs are too proud to invent
new brands for their products, they'll be inventing new resumes.
the way, Sony's MP3 player is called the Walkman. While teens may not
remember the cumbersome portable music device that was once so popular,
those 30 and older, who are the fastest growing purchasers of digital
music players, sure haven't forgotten. And they associate it with
cassette tape technology. We don't like its prospects either....