It's a go for Disney-Infoseek's GO

GO Network, which has been live in beta for several weeks but officially debuted Tuesday, offers a conglomeration of content and services from Disney (NYSE:DIS)and its assorted properties. Those include ABC News and ABC television, Infoseek, ESPN, and the Mr. Showbiz entertainment site, encompassing some 50 partnering Web sites, Disney and Infoseek officials said during a press conference here.

Executives of the companies acknowledged the site looks much like the other Web portals, but its navigational system, personalization features, strict privacy and anti-spam policies, and adult content screening features set it apart from the pack, said Infoseek (TRADES:SEEK) Chief Executive Officer Harry Motro.

And then there's that other differentiator: the nearly-ubiquitous Disney marketing machine. The undeniably expensive venture (although executives wouldn't say just how expensive) proves Disney's determination to transform itself into as formidable an Internet brand as it is in entertainment, said Disney Chief Executive Officer Michael Eisner.

"We are hell-bent on not being in a railroad car as jets fly over us," Eisner said. "This will be the true test for our company of whether or not we deserve the praise we often get for being 'synergistic,'" he said.

As to when the venture might be profitable, the Disney chief said profits might be some time off. But he indicated that the companies are confident that profits will eventually come.

"I'd say this is a long-term project for us," Eisner said. "This has taken a certain amount of investment spending and will continue to do so. But the fact that each of these gentlemen next to me have signed on and given so much support to this venture proves how confident we are in it," he said, pointing to a group of ABC, Infoseek and ESPN executives gathered for the press conference.

'A good place to be'
"This is a very good place for this company to be," Eisner said. "Our company seems to be very good at layering entertainment and information on top of technology."

"We see very substantial long-term earnings potential" from the venture, said Jake Winebaum, chairman of Disney's Buena Vista Internet Group.

Eisner also noted that the $165 million deal Disney made with Infoseek to produce the portal -- a deal calling for Disney to provide promotions worth that amount in exchange for $165 million in cash over five years -- would have been worth "more like $1 billion a year" to "any other company that came to us and asked for this kind of promotions."

Eisner, Infoseek's Motro, and Winebaum trumpeted a Media Metrix survey which maintained the GO Network portal would reach nearly 40 percent of Internet users at its launch, based upon traffic to the existing Disney, Infoseek, ABC and ESPN partner sites.

Asked why consumers should use the GO Network site as opposed to the other portals, Motro went down a laundry list of features. A "follow-me" navigation system keeps track of and displays the user's navigational path, letting the user surf within a specific subject area without continually having to return to the portal's home page. A single registration sign-up allows navigation throughout the network of partner sites. Age-specific registration and an optional content filter keeps adult content screened off from young users, and no advertising for adult sites will be accepted on any GO Network pages.

The combination counts
"It's the combination of these features and the trusted brands we offer that differentiates GO Network in total," Motro said.

But the executives made it clear that they intend to promote the portal more efficiently than its competitors are promoted, noting that online and offline marketing for GO Network will feature a consistent theme. A sample television promotion for the ESPN site shown during the press conference said it is "now part of the GO Network," and showed the ESPN.com Web address merging into the GO.com green-light logo.

"Our online properties are built around our TV properties," Winebaum said. "Every time a URL is mentioned, it will point users to the GO Network." E-commerce tie-ins are also on the horizon. By the end of this quarter, "shopping tabs" pointing users to online commerce options will be added to each GO Network page, said Barak Berkowitz, senior vice president and general manager of GO Network.