American Online pitching itself as an Internet content firm

NEW YORK - After reporting a quarterly loss of a billion dollars and a 26 percent drop in revenue yesterday American Online (AOL) has said that it wants to pitch itself as an Internet content company that attracts advertising revenue.

CEO Tim Armstrong, a former Google executive, pointed to efforts to beef up its music business, and to increase online video production with bands like the Jonas Brothers. He also said he’s in “second-level” discussions on a new search agreement with Google and others.

“I would expect us in 2011 to start getting on a very stable ground and track record of growth,” the New York Daily News quoted Armstrong, as saying.

The goal of the overhaul is to steer AOL away from its dialup Internet beginnings and beyond its unsuccessful 2001 takeover of Time Warner.

Even Armstrong agreed: AOL, which was spun off from Time Warner last year, was “very sick,” he said. “Our job at AOL is to make the patient better.” (ANI)