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AOL to launch area for African-Americans

By Paul Davidson, USA TODAY
America Online Wednesday is set to launch a special content area for blacks in a bid to better serve one of the fastest-growing segments of the online audience. It is the first such foray by a major Internet service, analysts say.

Black Focus: Content is gathered and created for an African-American audience.


"We can't speak to all 30 million members in the same voice," says Belinda Hankins, AOL executive director for African-American business. "We want to be the brand of choice and provide compelling and relevant experience for African-American members."

AOL, which for the first time this year posted a net loss of subscribers, is trying to retain and grow a prime audience segment and generate new ad revenue. Eighty-five percent of blacks online say black-oriented news would be valuable to them, AOL says.

Blacks make up about 4 million, or 14%, of AOL's 27 million U.S. members, vs. 8% of U.S. online users.

In the past, AOL has offered black-oriented chat rooms and message boards, but only limited content.

Black online users are expected to grow at an 8.4% clip from 2004 to 2007, double the rate of the white audience, says AOL and Jupiter Research.

AOL researchers also say blacks:

• Are 27% more likely than the general audience to get a broadband Internet connection in the next year.

• Read online ads more often than the overall population.

• Buy more clothing, music and videos online than the general online audience.

Yet, some analysts say AOL might face a rocky road if it expects to compete against established African-American Web sites, such as BET.com and BlackPlanet.com.

"You have to have a staff fully in touch with (African-American) needs," says IDC analyst Jonathan Gaw. "That normally doesn't come out of big media companies. Branding is also an issue."

Scott Mills, BET.com's chief operating officer, says the company is not concerned about a new challenge from AOL.

"We have a large team of producers creating original content for African-Americans," Mills says.

"My sense is AOL has not assembled a content team comparable in size."

Mills says he believes AOL's content will likely supplement, rather than replace, the offerings of leading black Web sites.

AOL officials say they are less interested in competing with those sites than in solidifying its leading position among Internet services.

AOL Black Focus features news, beauty and style tips, relationship advice, chat rooms and cultural and entertainment offerings, all from a black perspective.

The company's content partners include Black Enterprise magazine, AOL Time Warner's African.com and NPR's The Tavis Smiley Show.

Members can access the area by typing "black focus" in AOL keyword or clicking on "people and chat" on the welcome screen.