AOLTW, Samsung enter marketing deal

AOL Time Warner and Samsung Electronics said today they have entered a multiyear non-exclusive agreement to make advanced digital set-top boxes and increase Samsung’s brand visibility across AOLTW’s many media channels. Terms of the deal were not disclosed.

The companies said they would develop set-tops for the media giant’s interactive TV arm, AOLTV, which would feature TiVo personal video recording capabilities. Additionally, AOLTV members could use their television for instant messaging, email and surfing the Web.

The agreement takes advantage of AOLTW’s extensive media reach, giving Samsung exposure across the company’s network of publications and media outlets. The company is aggressively pushing its marketing partners into cross publication and platform marketing deals, said Rob Lancaster, an analyst at The Yankee Group.

“AOL can get to households that don’t have Internet access and can also get to households that may not have a TV through their print publications or their movies,” Lancaster said. “They can get to just about everybody.”

As the Internet advertising market continues to sag, Lancaster added AOLTW has used the slowdown to its advantage, remaining relatively strong by bundling advertising across platforms to generate ad dollars.

“The customer is going to recognize the benefit of advertising across so many levels,” he said. “At the same time, AOL is preying on the fact that the online market is in a bit of a slump.”

AOLTW said it intends to promote Samsung’s DVD players and HDTV in print and online versions of outlets, including People, Entertainment Weekly, Sports Illustrated and Moviefone.com. A tie-in with the 2002 Winter Olympics, in which AOL members can register to win Samsung product prizes, also is planned.

Adi Kishore, also with The Yankee Group, said the advanced set-top technology development is experimental for AOLTV given the lukewarm customer response to its interactive unit launch last year. The most significant aspect is the marketing alliance with Samsung.

“This is a great deal for Samsung,” he said. “We’ve seen what sort of phenomenal marketing muscle AOL packs.”

Last week, AOLTW entered a similar agreement with Amsterdam-based Philips Electronics to develop a television-based e-commerce platform and next-generation set-top boxes.