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THERE’S no way he pulls this deal together, Bill
Daugherty remembers thinking. It was more than four years ago,
and Daugherty — then an executive with the National Basketball
Association — was sitting at a table in the New York City
headquarters of USA Networks, surrounded by turf-protecting
top-level managers from a dizzying variety of disciplines:
sports team owners, players associations, broadcasters,
merchandisers, ticket sellers, the lot. At the head of the
table was Jonathan Miller, who was running the nascent
interactive division of Barry Diller’s USA Networks. He
pitched a plan to these oft-warring factions: Let’s do a deal
to sell tickets to games and hawk sports merchandise on USA’s
Home Shopping Network while we broadcast games on USA. Miller
said: “This will work and it will be a terrific win for
everybody here, or five or six parties around this table can
screw it up. My job is to pull it together.” “He sold it on a
macro level and worked like crazy on an individual level,”
said Daugherty, now co-chief executive of the Excite Network
and a longtime friend of Miller’s. “And he didn’t just do it
once, he did it seven more times” with other sports leagues.
This sort of collaborative orchestration is what Miller brings
to AOL Time Warner as the company’s new chief executive of
America Online, according to those who know him.
A 45-year-old Harvard University graduate and high school
member of the New York City math team, Miller has a keen
analytical eye and an amiable personality groomed under
Diller’s tutelage. “You can’t be in Barry Diller’s company
without being someone who works as part of a team,” said an
entertainment industry source. Miller joined USA in 1997 and
quit in June, as his job had essentially disappeared. Last
December, Diller sold USA’s entertainment properties to
Vivendi Universal and renamed the remaining assets — such as
the Home Shopping Network, Ticketmaster and the Expedia travel
booking site — USA Interactive, which he then ran. This meant
Miller’s position, running USA’s interactive businesses — had
become duplicative. The key lesson Miller learned from Diller:
“Barry is relentless,” he said, in an interview the first day
in AOL. “He does not stop once he is on a mission. He is a
builder and he will not stop.” Miller is also described as a
builder, rich in industry contacts that may be able to help
the troubled America Online unit, which has experienced
flattened subscriber growth and crashing advertising revenue.
AOL Time Warner Chairman Steve Case hopes Miller can do for
America Online what Don Logan — now the company’s chairman of
its Media & Communications Group — did as head of Time
Inc.: Revitalize a business that some had written off. “Most
people thought Time’s best days in the past. Don rebuilt that
team and focused on the reader,” Case said in an interview
Tuesday. “Jon brings a fresh understanding of what is the
right way to generate additional revenues beyond basic
subscription fees.”
Miller cut his marketing teeth in the National Basketball
Association, where he ran its television productions from 1988
to 1993. An avid basketball player at more than 6-foot-3,
Miller can “shoot the lights out,” said longtime friend Bill
Jemas. When Miller and Jemas were at the NBA, the video
production shop was not growing at the same clip as the
league, which commissioner David Stern was effectively
marketing as a world sport with superstars such as Larry Bird,
Michael Jordan and Magic Johnson. “The people in NBA
Entertainment used to make videos of the teams they liked,”
recalled Jemas, now the chief operating officer of Marvel
Enterprises, the comic book company. “There were a lot of
Celtics fans there, so every year, they made a Celtics video.
Which was great for the 5 percent of the NBA fans who liked
the Celtics, but nobody else.” Miller persuaded the video
division to help him overhaul the operation and turn out a
variety of videos. He signed deals with record labels to use
their music on the NBA’s videos and the NBA’s television
shows, such as Inside Stuff. Then he established a retail
distribution system for the videos. The result? “In the entire
time we were there, we beat the NFL in exactly one product
category — home video,” said Jemas. “That was the only area
where we were ahead of the 800-pound gorilla that is the NFL.”
If anything has prepared Miller to take over America
Online, it is his experience at USA, said the entertainment
industry source. One of America Online’s biggest challenges is
moving its service — which claims to have 34 million
subscribers — from dial-up to high-speed Internet service,
otherwise known as broadband. At USA, Diller calls his
shopping experience “near-broadband”: Consumers watch a
high-quality presentation of goods for sale on their
televisions then go to the Home Shopping Network Web site to
make their purchase. “The faster [America Online] accepts that
is their future, the faster they will plan to be the best
service for people in that broadband environment,” the source
said, adding that Miller “will make AOL relevant for the
broadband world.”
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