The new unit, MediaGlow, intends to launch more than 30 editorial websites in 2009, covering areas such as reality TV, soap operas, jazz, heavy metal and pop culture for kids.
The unit also intends to build thousands of niche sites over the next two years, utilizing technology created by recently acquired companies Relegence and Sphere.
In the past year, AOL's programming unit has seen page views climb 40 per cent year-on-year and engagement levels have increased 20 per cent, according to comScore.
AOL chief operating officer Ron Grant said the launch of MediaGlow completes AOL's transformation to an advertising supported business, following the creation of Platform-A.
"Today's fragmented online environment requires programming that targets people's passion points at scale across a range of unique sites," he said.
"Over the past year, we have mastered the art of producing high-quality vertical and niche programming at scale. Now by centralising and investing in this infrastructure, we will ensure that we are maximising our potential for monetisation."
MediaGlow will be led by Bill Wilson, AOL's former executive vice president of programming.
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