• by David Goetzl  @dgoetzl, December 6, 2006

When it comes to digital distribution of its Warner Bros.-produced television content, Time Warner Chairman-CEO Dick Parsons said the company needs to find the sweet spot between leading and following the consumer.

Warner Bros.--and TW unit HBO--need to "ride the wave of technology and change as opposed to getting too far ahead of it or behind," he said.

Put simply, the company doesn't want to lose out on the opportunity to expand revenues and reach via online distribution of, say, "The Closer"--but wants to avoid making the content available in such a way that undervalues it.

As a result, Warner Bros. has established a digital production studio aimed at finding the best way to prepare and monetize content for new media. An example might be offering a show in short chapters over mobile phones as opposed to a full-hour episode ill-suited to the medium, he said.

Parsons made his comments Tuesday during an appearance at an annual Credit Suisse investor conference in New York.

The executive also effusively praised Randy Falco, the newly named CEO of AOL, calling him "a leader and a manager who could bring us superior execution" and "a first-class guy."

Parsons said Falco's style meshes with TW's executive culture and his vast experience in the television advertising business will serve AOL well as the one-time Internet pioneer shifts focus to make advertising its principal revenue stream. "This is an advertising business we're trying to build here," Parsons said.

Predicting that page views on AOL would increase next year, Parsons said: "The AOL name, for whatever reason, has got a little buzz back."

Ironically, any frisson the brand may be benefiting from comes at a time when AOL has severely curtailed its own marketing efforts.