Monday, January 11, 2010

Is AOL a brand that can survive?

If I asked you to tell me what comes to mind when you think about the brand America Online (AOL) you might respond with words like, dial-up access, email or maybe even recount the days of endless discs or CD's showing up in your mailbox urging you to try the online service or perhaps an old, familiar voice that used to inform you that "you've got mail."

According to a Washington Post article, AOL announced a reduction in force of 1,000 employees as it tries to rebrand itself as a web content publisher. The article states that AOL's target is to shed 2,500 jobs or 1/3 of its workforce. That means that AOL must think that it can survive as a web content provider with ~5,000 people which seems awfully bloated to me.

Will AOL survive? If it does my hunch is that it will be as a much, much smaller entity than 5,000 people. An even stronger feeling tells me that brand AOL will go away all together. If it survives at all it will be a much smaller entity with a much different business model. And it will most likely have a new name at that point. Something that has modern, relevant meaning and much less historical baggage.