NEW YORK (Reuters) - Time Warner Inc. Chief Executive Richard Parsons said on Tuesday the AOL Internet division is capturing advertising faster than the market expected as it moves from a subscription model to one supported by ads.
Time Warner, the world's largest media company, announced its new strategy for AOL in August, offering many of its Web services to users for free in the hope its entertainment and information would capture larger audiences attractive to advertisers.
Asked whether he thought the transition for AOL was going faster than expected, Parsons said: "I think it is."
"First of all we're finally moving in AOL with the tide," Parsons said in an interview with Reuters Television during the Reuters Media Summit in New York.
"We have a huge audience and a real ability to monetize, I think better than the market had anticipated," he said. "We're seeing very positive results on the advertising side of the business."
Paid AOL subscribers are moving to its free services at about the rate the company had expected, he said.
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