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AOL Partners With Amazon Unbox

Dec 3, 2007  •  Post A Comment

The online TV download business grew smaller today as AOL officially shuttered its AOL Video Store. The Web giant has now partnered with Amazon Unbox.
Under the deal, AOL is sending traffic to former competitor Amazon Unbox and will receive a referral fee for purchases made on Amazon that were routed from AOL Video.
AOL said it wants to direct resources to its ad-supported streaming video business.
“With AOL’s ad business model being an ad-driven business and the fact that the folks at AOL want to focus on streaming content, we made the switch to Amazon because they have thousands of assets and with them focusing on downloads we can focus on streaming videos,” an AOL spokesperson said.
Indeed, most market estimates suggest that ad-supported streaming will grow faster than paid downloads of content. Research firm eMarketer predicts that ad spending on online video will grow 89% this year to $775 million.
In an email to its customers AOL said videos already purchased from the AOL Video Store will stay on consumers’ computers. But if users want to transfer videos to another computer they need to do so by Dec.

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