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To: Sam Citron who wrote (7035)	4/12/1999 5:37:00 PM
From: Thomas Kirwin	Read Replies (1) \| Respond to of 17679

TV networks still a sideshow online Monday April 12 5:21 PM ET By Margaret Kane, ZDNet The networks may rule the television dial, but whether they will dominate the Net has yet to be determined. CBS Corp. (NYSE:CBS - news) stepped up its efforts today, announcing investments in two Web sites, Hollywood.com and storeRunner.com. The company said that the investments, which call for the company to exchange $200 million worth of promotions for equity stakes in the companies, are part of its strategy to be "as strong a player in new media as we are in the established media." But analysts said that the network, like its compatriots on the dial, still has a way to go before it can be a true Internet powerhouse. "We really believe that branding is important because in the U.S., the number of Internet users will triple in next few years and those new users will figure out where to go from television," said Barry Parr, an analyst at International Data Corp. in Mountain View, Calif. Of the four networks, only ABC has been able to compete on a level with some of the major Web brands, because of its parent, Walt Disney Co. (NYSE:DIS - news). Disney's deal with Infoseek Corp. (Nasdaq:SEEK - news) to create the Go network has enabled it to combine all of its divisions, including ESPN, under a single umbrella. "Disney knows that its destination brands are [currently] stronger than the Go brand, but if you watch ABC programming you see Go next to every URL they provide," said Melissa Bane, analyst at the Yankee Group in Boston. "Over time they want to have that umbrella brand in place so they can weave all of their programming through that." NBC has followed a similar strategy with its acquisition of the Snap portal. And MSNBC, the network's joint venture with Microsoft Corp. (Nasdaq:MSFT - news) has also allowed it to establish itself online. While CBS was late to the party, it has been somewhat aggressive. It recently spun off its CBS Marketwatch (Nasdaq:MKTW - news) financial site and still holds an interest in SportsLine USA Inc. (Nasdaq:SPLN - news), but has not yet brought together its properties under the "umbrella" the way Disney has done. And its recent deal with America Online Inc. (NYSE:AOL - news), which makes CBS the "premier" provider of news in the AOL and CompuServe services, has been criticized for promoting AOL more than CBS. Fox far behind "CBS is attempting to build these sites essentially from scratch. And what they could end up with is a disparate group of sites," Parr said. "They don't really have an umbrella that embraces those sites and gets the network referrals that Disney has been able to achieve. That may emerge over time but right now they appear to be struggling to figure out a strategy." CBS is still faring better than the Fox Network, a division of News Corp. News Corp's interests include movies, television, publishing and professional sports, but the company has yet to make much of an impact online. That's not for lack of trying, though, said analysts, pointing to the company's 1993 acquisition of the Delphi online service. "News Corp. has already made a couple of stumblings in Internet space," said Bane, saying that the company may be gun-shy about future Internet projects. "If they're going to do something else they want to make sure they're completely committed. They can't afford a third strike." See Also: WebTV snares 'Baywatch' TV programming guru says it's a woman's Web, too Where did the TV network viewers go? Entertainment moguls eager for interactive TV