Ookla, the global leader in independent broadband testing, has completed a study of all ISPs’ average download speeds in 2011 and found that throughout the year the six fastest ISPs were Comcast, Charter Communications, Cablevision Systems, Time Warner Cable, and Insight Communications. According to the report, Comcast and Charter were found to have an average download speed of 17.19 Megabits per second. Cablevision ranked third at 16.40 Mbps, Cox at fourth at 15.74 Mbps, Time Warner placed fifth at 14.41 Mbps and Insight followed in at sixth at 14.22 Mbps.

Craig Moffett, a senior analyst with Sanford Bernstein, told Multichannel News that cable’s rule over the broadband dominion won’t be ending anytime soon. “As more people are served by higher-speed connections,” said, “more and more applications are evolving to take advantage of them. Customers with lower-speed connections are increasingly being forced to upgrade to higher speed connections… or be left behind.”

In other words, you get movin’ so fast that you can’t slow yourself down.

Verizon was a stand-alone among telco and DSL providers in being the only non-MSO that managed to hold a candle to the cable provider’s broadband speed. Verizon was clocked as having an average download speed of 12.94 Mbps. Other than that, its telco contemporaries and DSL providers, as a comparison, were moving at not-quite-corpse speed. AT&T, for example, averaged a download speed as 4.40 Mbps and Qwest Communications averaged 6.34 Mbps.

Stepping down from a cable modem these days to a telco or DSL provider would probably feel like running into a quicksand trap for many users, especially if the difference is going to be as low as 25% of the download speed you’re used to.

It seems that the high speed dominance of multiple system operators isn’t that big of a secret to Internet users as as Comcast and Time Warner are already the top two worldwide MSOs with 22,360,000 and 12,109,000 subscribers, respectively. Or, alternately, if you’re already tethered to one of these MSOs and were holding out on some impossibly faster ISP out there, well, sorry – you’re not gonna get much faster Internets anytime in the near future.

Geoffrey A. Fowler broke this story by reporting that D’Arcy will join Facebook as its “director of global creative solutions to help boost the appeal of the social networking service’s ad offerings.”

Then Fowler continued, “In the newly created role that he will begin in early May, Mr. D’Arcy will be responsible for leading a team charged with developing ideas for how advertisers can use Facebook in their marketing campaigns.”

That’s a smart move on Facebook’s part. After all, in a general sense, most marketers now accept that brands should have a presence on the social network, and many do. Only organizations tend to run out of steam after setting up a Facebook Page, just making the occasional update about a sale or changed hours of operation.

Also, more specifically, D’Arcy should be a good person to give pointers. His Time Warner bio states that he “spent 15 years as an award-winning writer and creative director in advertising.” Also, he’s “a member of the International Academy of Digital Arts and Sciences, serves on the Ad Council’s creative review committee and the Board of Trustees for the Museum of the City of New York and the Independent Filmmaker Project.”

D’Arcy will remain in New York rather than move closer to Facebook’s headquarters in Palo Alto.

Clearly, the revenue made from the initial subscription is not enough to cover the overhead of installing an infrastructure capable of online streaming. Wait, that’s not what this is about. Instead, it’s a case of those providing the content wanting to further monetize their shows, even if Time Warner’s app is free. According to MediaWeek, the Time Warner app allowed subscribers to:

…stream video content to iPads and other tablet devices. Although Time Warner Cable introduced the free app just 24 hours, a number of cable network groups have already made it abundantly clear that they had not signed off on any such distribution arrangement.

The report goes on to say the application has the capability of streaming up to 32 cable networks to Apple’s tablet, including channels like Comedy Central and the USA Network. Nevertheless, not all content providers are pleased with Time Warner’s actions. Perhaps if there would’ve been some collusion between the content providers and Time Warner, things would be different; but as it stands, there’s a lot of work to be done before these “TV on the go” applications become commonplace on the tablet environment.

There may have, however, been some overreaction on the content providers’ part:

…one affiliate chief acknowledged that streaming to gizmos within a limited range of hearth and home may be “less of a threat” than the networks are letting on.

But it’s never been about a measured reaction. Things like Time Warner’s app and the subsequent hubbub comes down to two things: control over content in order to monetize it. Meanwhile, the consumer is once again left out in the cold.

The TWCable TV app for iPad is a free download and is available to subscribers who pay for Internet and video service.

Features of the app include:

*Tap to stream live digital TV programs instantly to iPad anywhere in your home.

*Scroll through the channel guide to see “What’s on now,” and “What’s on Next”.

*Use your home’s existing WiFi connection without extra hookups.

*Access to live feeds of 32 channels in HD.

“It’s just phase one of a much bigger vision that we plan to execute on this year and into the future. It’s so much easier and faster for us to develop in an app environment than for set-top boxes, so you can expect to see more improvements faster and more frequently,” said Jeff Simmermon, Director of Digital Communcation, Time Warner Cable.

“For example, we’re going to add more channels and functionality as soon as we can. We’re already working on developing set-top box remote control functionality and DVR management.”

Would you consider dropping Netflix if they don’t feature timely new releases? Let us know.

Time Warner CEO Jeff Bewkes said, "So far the 28-day window has clearly been a success versus no delay … the question of whether we ought to go longer is very much under scrutiny. It may well be a good idea."

Since Janurary, Netflix and Redbox customers were forced to wait a month to get new releases from Warner Bros… soon you could be waiting 45 or maybe even 60 days, but that’s just speculation at this point, as the current contract doesn’t expire until 2011.

The worst part about this situation is that other movie studios will probably jump on the upped wait time bandwagon. Will someone please explain why blocking or throttleing content seem like a good idea? This makes about as much sense as networks blocking content from Google TV.

Vent your frustrations here.

Sports Illustrated will manage and create all editorial content across its platforms, including its magazine, its websites, mobile and the tablet version of the magazine.

Under the new agreement, Turner Sports will be responsible for business and technical operations, ad sales, product management and marketing for SI.com and Golf.com, which will be added to Turner’s portfolio of 19 digital sports and entertainment sites. The two organizations will collaborate on multiplatform sales across their collective properties.

"The Sports Illustrated brand and award winning journalists complement and enhance Turner’s portfolio of sports offerings and reflects our combined commitment to bring fans greater content across a multitude of platforms," said David Levy, president of sales, distribution and sports, Turner Broadcasting System, Inc.

"The deal also provides greater opportunity for advertisers to expand their reach and activate innovative marketing opportunities to access more potential consumers across multiple platforms. By leveraging Turner’s vast digital sports and entertainment portfolio, we expect to provide additional display, sponsorship and video advertising opportunities for SI.com and Golf.com."

Turner Sports broadcasts the NBA, Major League Baseball, NASCAR, the PGA Championships, and starting next year, the NCAA Division I Men’s Basketball Championship.
 

"We have made significant progress in support of the long-term vision we see in the future of AOL, but today’s results continue to reflect the need for our focus and execution on the work required in the turnaround of the Company," said Chairman and CEO Tim Armstrong. "2009 marked the closing of an important chapter in AOL’s history and the opening of a new chapter that we are passionately pursuing. We have a clearly defined strategy, and we enter 2010 incredibly focused on day-to-day execution."

Here’s the summary:

AOL says Q4 revenue declines reflect continued attrition in the subscriber base, leading to declines in subscription and search & contextual revenue. While AOL Properties global display advertising revenue declined 3%, AOL Properties domestic display advertising revenue grew 1%, its first quarter of year-over-year growth in eight quarters. Other noteworthy items as highlighted by the company include:

- Q4 costs of revenues declined at a lower rate than revenue reflecting a 12% increase in traffic acquisition costs (TAC) primarily associated with payments for shipments related to a significant product distribution arrangement. As of December 31, 2009, new shipments under this contract ceased.

- Full-year and Q4 2009 Adjusted OIBDA, operating income and pre-tax income include $190 million and $107 million, respectively, in restructuring costs and certain other items fully discussed on page 8 of this press release.

- We anticipate our restructuring efforts will reduce ongoing operating expenses, excluding TAC and net of incremental operating investments in the business, by approximately $150 million in 2010.

- Full-year and Q4 2008 operating loss and net loss reflect a $2.2 billion non-cash goodwill impairment charge.

- Full-year cash provided by operations declined, driven by Adjusted OIBDA declines. The cash flow impact of these declines was partially offset by the timing of working capital changes, including lower employee bonus payments in 2009. Full-year 2009 Free Cash Flow grew slightly, reflecting reduced capital expenditures in 2009. Q4 2009 cash provided by operations and Free Cash Flow declined due to the settlement of a legal matter and a Value Added Tax matter in France.

- AOL had $147.0 million of cash-on-hand as of December 31, 2009, and has not borrowed under the terms of our revolving credit facility, as of February 2, 2010.

Further details and charts can be found here in the release. It will really be interesting to see the report a year from now after AOL has settled into its new role on the web.

Related Articles:

> AOL Acquires Video Creation/Distribution Company StudioNow

> AOL Top Ad Network In December

> Tim Armstrong Weighing Search Deal With Microsoft

Yesterday it was announced that AOL’s CTO (chief technology officer) was getting off the boat. Considering that this journey isn’t even two months old yet this is not the kind of sign investors and others would like to see. All Things Digital tells us more

While AOL denied a report last week suggesting that CTO Ted Cahall is leaving, he actually is, um, leaving.

Oops!

Sources at AOL said the company thought Cahall was staying when it issued a statement saying he was not leaving. Cahall apparently had other plans.

Part of my job here at Marketing Pilgrim is to interpret news events. I do this from the point of view of the “everyman”. In other words, I am a regular guy like many who are readers here. So here I go with my opinion on this kind of a move at this point in time of the development of AOL as it moves into the future: OUCH! That’s gonna leave a mark.

Either something is seriously wrong there or, I don’t know…… you tell me. This is not a good thing to have happen and one has to suspect that we are not going to know just why this happened. The official word to employees from the main C-level guy at AOL, Tim Armstrong, reads like this.

Ted Cahall took on the role of CTO after I had asked him to move into that position from a broader business role at the company. Ted is the person who drove the complete replacement of our publishing systems and took AOL deeper into open-source technology, among many other accomplishments. We all owe him a debt of gratitude for the work he has done. Ted has decided to move back into the business side of technology and feels it’s the right time to move on from AOL. Ted has been a strong leader at AOL and agreed to transition the company to a new CTO. We are aggressively searching for a new CTO and we believe AOL is a very attractive opportunity for the right candidate.

Armstrong has been the CEO for less than a year and one of the guys he asked to move into this position has jumped ship. To make it even more odd is that AOL was denying this was even happening right before Cahall made his move.

You don’t need to be a rocket scientist to read between the lines here. So for all of you CTO types looking for your next gig, Tim says that AOL believes that it is a very attractive opportunity for the right candidate. I guess Cahall wasn’t the right one and one has to suspect that anyone who steps into that role in the future has a soft spot for Kool-Aid.

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"Our new identity is uniquely dynamic. Our business is focused on creating world-class experiences for consumers and AOL is centered on creative and talented people – employees, partners, and advertisers. We have a clear strategy that we are passionate about and we plan on standing behind the AOL brand as we take the company into the next decade," said Tim Armstrong, Chairman and CEO of AOL.

Curiously, in the press release, AOL still uses the all caps method of spelling its name. That doesn’t seem like the best way to kick off this new brand identity. To be fair, the company says that identity will be fully unveiled on December 10th, so I guess such trivialities will have to wait until then. That’s when AOL’s common stock begins trading on the New York Stock Exchange.

Here are a few instances of the new logo, placed on various images:

"Historically brand identity has been monolithic and CONTROLLING, little more than stamping a company name on a product.  AOL is a 21st century media company, with an ambitious vision for the future and new focus on creativity and expression, this required the new brand identity to be open and generous, to invite conversation and collaboration, and to feel credible, but also aspirational. We’re delighted to have worked so closely with the AOL leadership team to create something bold and exciting that sets AOL apart," said Karl Heiselman, CEO of Wolff Olins.

Wolff Olins is the consultancy firm that AOL partnered with to develop the new brand identity. According to AOL, some of the "world’s best creative artists" created the art and animations for the new brand look.

What do you think of the new AOL logo? Share your thoughts here.

Related Articles:

> AOL and Time Warner Officially Splitting Up

> AOL Names Post-Time Warner Board of Directors

> AOL Taps Arthur Minson As CFO

Well, on December 9th, that union will be no more.

You can read the wordy Time Warner press release, but you’ll probably either fall asleep or your head will explode, before you reach the end. Instead, we’ll turn to trusty Reuters to translate the announcement into plain English:

Time Warner shareholders of record on Nov. 27 will receive an AOL stock dividend for every 11 shares of Time Warner common stock they hold…Based on the closing price of Time Warner’s stock at $32.35 and its 1.17 billion outstanding shares, the ratio would effectively value AOL’s market capitalization at around $3.44 billion…AOL common stock will begin trading on a ‘when-issued’ basis on the New York stock Exchange on Nov. 24 and will start trading under the ‘AOL’ symbol on Dec. 10.

Of course, it’s been almost 6 month months since Time Warner announced the AOL spin off, but now we finally get a date to watch. On December 9th, former Google exec and AOL CEO Tim Armstrong, will get to show us what he–and AOL–are made of!

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