New York, July 17: America Online is introducing a new version of its Internet software that features improved e-mail and video instant messaging, aiming to reverse mounting defections by its subscribers to other services. The new version, which will be available to AOL members in a couple of weeks, comes nearly a year after Jon Miller took the helm of AOL Time Warner Inc.'s online unit. It reflects his drive to revamp the service, expand its own high-speed offering and stem the slide in AOL's dial-up base as subscribers leave for high-speed providers and other services.

"They have come a long way," said Forrester Research analyst Charlene Li. "AOL 8.0 was such a disappointment that they now have a foundation for a good service. It puts them back in play."
Jupiter Research analyst David Card said the new version, known as AOL 9.0 Optimized, has a lot of little changes, many of which are aimed at getting dial-up users "addicted" so that when they switch to high-speed access through their cable or phone company, they need to keep AOL.
"That's a smart strategy," Card added. Bureau Report