AOL Looks to Lure Users With Online Video Site

AOL, the Internet branch of Time Warner Inc., is revamping its online video Web site with more than 45 video-on-demand channels and an improved search engine to attract broadband users. Aolvideo.com will allow users to watch music videos and movie trailers from companies such as MTV and Warner Bros. They will begin testing the site on Aug. 4 and then make it available to all viewers on Aug. 22.

The video-on-demand online channels will offer TV programs such as "SpongeBob SquarePants" and "Laguna Beach" for $1.99 per episode, and the site may eventually sell movies to download. AOL will also make money from selling online ads as users watch movie trailers and home-made videos for free as part of their initiative to break into the lucrative online video search market currently dominated by Yahoo! and Google.