AOL Not Playing Games:

America Online’s decision to eliminate a popular game last week prompted an unusually public spat between the giant online service and one of its longtime content providers--and underscored the acrimony accompanying AOL’s efforts to renegotiate many of its content deals.

Starting last Wednesday, subscribers searching for the MetaSquares game--a checkers-like board game--were greeted with an electronic farewell banner: “On Sept. 1, 1997, MetaSquares will be leaving America Online,� the message said. “We wish them the best of luck.�

Saying they were blindsided by the online message, Carpinteria-based MetaCreations Inc. quickly put out an angry press release: “America Online abandons loyal subscriber base,� it said. “80,000 MetaSquares fans soon to be gameless.�

Behind the scenes, the move by AOL illustrated the tough stance it’s taking with content providers since switching to a flat-fee pricing model in December.

Many content providers, including some that have been with AOL for years, are being forced to give up royalty arrangements and provide their content for free, or be removed from the service. Some are even being asked to pay for the right to distribute their content on the network.

It’s all part of AOL’s efforts to redefine its business in the wake of the switch from charging subscribers $2.95 an hour to unlimited access for $19.95 a month. “The model has changed, and the contracts have changed to reflect that new model,� said Wendy Goldberg, spokeswoman for AOL.

John Wilczak, chief executive of MetaCreations, which created the MetaSquares game, said that because of the new pricing plan at AOL, profits and service are often at odds.

“Their goal now is to get you offline,� he said. “Whereas our goal is to get you online.�

MetaCreations previously received 20% of the hourly fees paid to AOL by the game’s players, said Wilczak, founder of the graphics software company.

But as the contract between the two companies drew to a close, Wilczak said, AOL sought to do away with the royalty arrangement altogether.

AOL offered to buy the game, but the offer was considered too low, he said.

Aside from the game, MetaCreations also had other content on AOL, including technical support sessions for people who use the company’s software. That will also be removed, Wilczak said, because AOL demanded about $55,000 per year to carry it.

AOL officials declined to comment on negotiations with MetaCreations. Wilczak said the company is planning to move much of its content to the Web, where it will be available to Internet users for free.