The merger of AOL and Time Warner has long since become a symbol of the misbegotten assumptions and skewed calculations among old and new media at the height of the technology bubble.

The challenge is how to create a free Internet site compelling enough to attract traffic and advertising -- with much of the content it previously reserved for paying customers -- without hastening the demise of its subscription business.

"The question remains, How does AOL fit into that new world? Is there a place for AOL in the Internet?"

"My biggest problem is the walled garden," said Mr. Kelly, who runs all of AOL's Web properties in addition to ad sales. "The world can't see the good stuff we do every day."