AOL to add paid downloads to free service

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Time Warner Inc.’s AOL plans to sell programing on its Web site by the middle of this year, a top executive said, as it hastens to secure a place in the market for video-on-demand over the Internet. Sounds like a great plan, but $1.99 seems a bit high priced to me.

The expansion of AOL’s video service, which will combine free Warner Brothers-produced TV shows and pay-per-download shows from established programmers together with user-created video clips, aims to address complaints about the rigid pricing structure and the mix of available programing on iTunes. The service will initially sell shows for about $1.99 per download and aims to move to a variable pricing structure, where hit shows would carry a higher price, Kevin Conroy, executive vice president of AOL Media Networks, told Reuters.

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