Time Warner Inc.has recently evaluated and speculated that its AOL division might loose around $1 billion in operating profit by the year 2009 if offers free services, reported Wall Street Journal.



However, according to internal company forecast, expected growth of Internet advertising revenue would help to some extent to compensate the projected decline in subscription revenue. The proposal is likely to cut about half of the profit from AOL’s U.S. sale of subscription to about $800 million. Anyhow, the company would be running in profit.



Further, according to the speculation, AOL would end up with slightly over six million U.S. subscribers by the end of 2009. At present, it has a total 18.6 million U.S. subscribers.



Via Reuters