One of the spreadsheets kept in a drawer at Time Warner Inc. (NYSE: TWX) headquarters must tell what percent of the AOL subscriber base is projected to move from paying for their service to the new free service that will form the foundation of the company's drive to get more Internet advertising.
AOL is making it tempting to continued as a paid subscriber. According to the Associated Press, AOL will announce that it will offer free insurance for identity theft and computer damage. The policy, from AIG, included up to $10,000 for the costs of replacing user indentity for social security numbers and bank accounts. AOL's $26 a month subscribers get the full coverage. Some subscribers under less successful plans are insured for less.
In other news, Jonathan Miller, the AOL CEO, will present at the Merrill Lynch Media and Entertainment Conference and will undoubtedly give a presentation on the company's new business model.
Time Warner shares closed at $16.90 yesterday, their highest point since late June. The stock now trades above both its 20-day and 50-day moving average.
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