New York ? America Online will meet its previously issued 2002 financial forecast, but the world’s biggest Internet service provider said Tuesday it expects a drop of 40 to 50 percent in advertising and other nonsubscriber revenues next year.

In order to keep and attract customers, AOL said it would begin offering exclusive content from other divisions at parent AOL Time Warner Inc.

The deals, which involve magazines such as People, as well as Warner Bros. music, CNN and HBO programs, had been widely anticipated as America Online repositions itself amid questions about the viability of its business.

The news came as company officials met with Wall Street analysts and investors, and provided the first major strategic update since word this summer the Justice Department and Securities and Exchange Commission were investigating the division’s accounting practices.

Earlier in the day, AOL said it expected overall 2003 revenues to be flat despite the drop in nonsubscriber revenues as “solid growth” in worldwide subscriptions limits the damage.

The expected drop in advertising revenue comes as many of the lucrative long-term ad contracts made during the Internet boom years are expiring and will not be renewed under as favorable terms.

Although some drop-off had been expected, Wall Street was not pleased with the extent of AOL’s projected revenue decline. AOL Time Warner’s stock closed down $2.36, to $14.21 in trading Tuesday on the New York Stock Exchange.

Jon Miller, the AOL division’s new chief executive, said it would spend the next year refocusing on member satisfaction and retention.

Clerks in the Standard & Poor's 500 Futures pit signal orders. A disappointing outlook from AOL Time Warner on Tuesday put investors on the defensive, prompting them to question the strength of other big companies and bid stocks sharply lower. The Standard & Poor's 500 index declined 13.78, or 1.5 percent, to 920.75.

“We’ll keep leveraging the firsts and exclusives that are making it cool to be on AOL again,” he said.

Among the initiatives announced Tuesday were plans to offer video from CNN for free to America Online members that currently is available for a fee on the Internet. Content from Time Inc. magazines such as People and Real Simple also will be exclusively offered, as will music and entertainment offerings. Also, HBO and America Online plan to collaborate on original programming. All the partnering companies are AOL Time Warner divisions.

“This is going to be a team effort,” said AOL Time Warner chief executive Richard Parsons.

Miller also said that the company would offer more choices to customers who access the Internet via high-speed or broadband connections.