AOL owes its strong position in the mobile domain to its ability to provide seamless access to AIM buddy lists on handsets through an elegantly designed service and its strong relationships with mobile carriers. Its challenge is to demonstrate that it can use AIM as the foundation to engage users with a broader base of services, much as it is seeking to do on the desktop by opening access to its portal and e-mail services and linking these with AIM.
More Quotes from Mark Donovan:Every major consumer brand and media property is embracing mobile.
Consumers' willingness to pay for mobile media presents a substantial market opportunity for converged digital media services. Companies that are developing digital media distribution businesses could see real profit from a sound mobile music strategy.
Although these are early days in mobile media, the aggressive efforts in mobile by Yahoo and AOL are paying off. But it is a close race, and as traditional media brands put more muscle into their mobile businesses, we expect that the market will shift.
It's clear that music is a key thing.
Among the U.S. carriers, Sprint has been the most aggressive in trying to become a media and entertainment player, and they're leading the pack.
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