Mr. Bewkes talked up AOL to the financial crowd, saying that unlike its rivals, the web giant is in a much better place to monetize potential new traffic because its owns third-party ad network Advertising.com, which he said delivers much of AOL's ad revenue. He also noted that Advertising.com places ads on rivals MySpace and Yahoo, but demurred when asked how much it delivers to those portals.
When asked about what Mr. Falco would do differently than his predecessor, Jonathan Miller, Mr. Bewkes responded, "Essentially, you've seen a little bit of it at Yahoo today," said Mr. Bewkes. "We really want to keep organizing AOL towards the customer experience and the products offered by AOL. To give an example, e-mail is more than half the page views of both Yahoo and AOL. We'll be organizing more precisely around e-mail and video and picture sharing."
He also noted that AOL is eager to regain its leadership position in providing a community for its users. "AOL used to lead in [community] and we gave it up to some others we all could name," he said. "We want to go back. We've got 115 million unique users so there's no reason we shouldn't be a leader."
Mr. Bewkes said AOL's search capabilities, along with its search deal with Google, will be an area that will be highlighted under the new regime.
When asked if AOL would build traffic or buy it, Mr. Bewkes responded, "It will be both. A good precondition if you buy traffic is to have a monetization cap that you plug in. You get an advantage that others can't. I wouldn't say we wouldn't buy traffic, but we could and we're in a good position to do it. We're able and interested in any reasonable acquisition."
AOL, which switched in August to an advertising business model from a subscription model, will end the year without the usual dip in users it has seen in recent years. As broadband and DSL became widely available, customers began dropping dial-up services such as AOL. Mr. Bewkes said the company had historically been "disincentivizing" both its distributors -- the cable operators -- and users with charges.
He also said Time Warner would have a much clearer idea of AOL's future ownership structure by mid-2007. "We would do whatever financing correctly for its risk or access to capital or getting the valuation right that it ought to have. Whether it's partially spun off or sold into private equity's hands, we'd always do that. The key constraint has to be long term."
Mr. Bewkes did talk briefly about the magazine business, highlighting People and its widely trafficked website, which he said was the No. 1 entertainment destination on the web. When asked if Time Warner would sell any more magazines than already planned, Mr. Bewkes responded, "Not now."