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Hugh Stephens, Vice President

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Hugh Stephens, Vice President – PowerPoint PPT presentation

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Title: Hugh Stephens, Vice President


1
Hugh Stephens, Vice President
  • AOL Time Warner Public Policy
  • Asia Pacific Region

2
Agenda
  • Introduce America Onlines business
  • Review current environment in China for the
    Internet and Interactive Services
  • Discuss lessons learned for successful growth
    of Internet in other markets
  • Highlight hopes for the future

3
Introduction to America Online
4
Who Is AOL, Inc.?
  • A wholly owned subsidiary of AOL Time Warner
  • The worlds leading interactive services company
  • More than 30 million members in 17 countries
  • 7 languages
  • Approximately 15,000 employees
  • Offices around the world in the US, Asia, Latin
    America, Europe
  • Consolidated revenues of US 7.7 billion

5
America Onlines Mission
  • To build a global medium as central to peoples
    lives as the telephone or television. . .
  • and even more valuable!

6
The Online Industry Leader
31 Million Members!
7
AOL Puts It All In One Package
8
Usage Patterns Reflect Everyday Interests
How Members Use AOL
Internet14
Commerce,Services, and Content47
Mail26
Chat13
Source Company Reports
9
(No Transcript)
10
AOL Anywhere
  • Three Part Strategy
  • AOL functions available on the Web for members
  • Communicator product on devices for members
  • Full featured product for appropriate devices

Connectivitywill extend beyond the desktop
computer
Online Appliances
Smart Phones
Set-top
Pocket Devices
Mobile Computers
11
(No Transcript)
12
Localized Services
  • Languages
  • English (UK, Canada, Australia)
  • German (Germany, Austria, Switz.)
  • French (France)
  • Japanese (Japan)
  • Dutch (Benelux)
  • Portuguese (Brazil, 1999)
  • Spanish (Mexico,Argentina)

13
Global Trade and Regulatory Environment
14
Benefits of flat-rate pricing
  • Retail flat-rate pricing structures stimulate
    Internet usage
  • Wholesale flat-rate pricing results in lower
    rates for end-users
  • Wholesale flat-rate pricing creates level playing
    field for independent ISPs

15
AOL Members Time Online Has Grown Sharply
Average Minutes per day per AOL Member
16
But Usage Lags Where Per-Minute Rates Are the Norm
  • A dramatic difference exists in the amount of
    time spent online by US AOL users and those in
    other countries

17
Current Environment
18
Huge Potential of PRC Interactive Services Market
  • Less than 2 Internet penetration
  • Relatively fast adoption of the Internet by
    people in the PRC as compared to other countries
  • Internet can become more and more central to the
    daily life of PRC consumers

19
Huge Potential of PRC Interactive Services Market
  • Number of Internet users in PRC has been
    increasing tremendously

20
Ingredients for Successful Internet Strategy
21
Lessons Learned for Successful Internet Growth
  • While China is unique in many ways, AOL
    experience points to some key ingredients to
    success
  • Convenient and easy to use services
  • Tailored to local consumer interests with local
    content
  • Low cost access and telephone/communication
    charges
  • Simple and convenient billing/payments systems

22
Lessons Learned for Successful Internet Growth
  • Confidence that online experience is safe,
    including protecting children from harmful
    content
  • Ability to develop multiple revenue streams
  • Subscriptions
  • e-commerce
  • advertising

23
Hopes for the Future
24
Hopes for the Future
  • WTO accession will strengthen Internet
    development in China
  • Foreign participation for its own sake is not the
    major benefit -- the commitment to a regulatory
    framework that encourages competition is the key
  • AOL hopes to play a positive role in this process
  • Making the Internet a mass medium that is
    affordable, useful, and easy to use for the
    Chinese people

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