AOL needs all the Internet traffic it can get, but it is struggling with the fading popularity of Netscape.com, for many years one of the Web's most popular destinations.
AOL doesn't break out how much Netscape.com contributes to its revenue, but calls the property a valuable one. "Netscape has a loyal community of users and is an important part of the AOL Network," an AOL spokeswoman said via e-mail.
Soon, AOL will restore Netscape.com to a traditional Web portal format, 15 months after turning it into a social news site, a change that, instead of boosting the site's popularity, hurt it.
Still, one can't blame AOL for the attempt to give Netscape.com a new lease on life as a Web 2.0 site. Traffic to the site had been on a years-long slide. This begs the question: Will switching Netscape.com back into a portal turn the tide?
With AOL fighting tooth and nail for every online ad dollar, the performance of the once mighty Netscape.com matters.
"If you have a brand that has some cachet or currency and carries recognition, it's logical to use it," said James Goss, a financial analyst with Barrington Research.
Still, Netscape.com's past glories will not magically draw people back to it. "It's probably not worthwhile to invest heavily on the site unless they have a coherent strategic plan for it," said industry analyst Greg Sterling of Sterling Market Intelligence.
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