AOL to launch online television

AOL hopes to launch the new service by early 2006

Internet giant America Online (AOL) has announced plans to launch a free online television service by early next year.

To be called In2TV, it will feature programmes from sister Time Warner company Warner Brothers.

The service will be organised into six channels, divided by genre, such as comedy, drama, and animation.

It is not yet known whether it will be available to AOL users outside the US. Rival internet firms Yahoo and Google plan their own online TV services.

Rights talks

In2TV will offer 3,400 hours of TV programmes from Warner Brothers in its first year.

Here, you have a great example of two sister operations with mutual needs being satisfied by the other Todd Chanko, Jupiter Research

AOL said the intention was for this to rise, and that it was also in talks with other main TV networks about securing rights to their shows.

The service will be supported by advertising revenue.

Analysts welcomed the announcement on In2TV, which has been two years in the making.

"Here, you have a great example of two sister operations with mutual needs being satisfied by the other," said Todd Chanko, analyst at Jupiter Research.

"It's a no-lose proposition."

AOL's websites are viewed by 112 million people each month.