Families with children are emerging as the latest hot demographic on the web. Only days after its chairman and CEO Michael Eisner announced plans to compete aggressively on the internet, the Walt Disney Company has exercised its option to acquire Paul Allen’s remaining interest in Seattle-based ISP Starwave Corp. Disney first invested in Starwave in April 1997, when the two companies formed joint ventures to exploit the online potential of Disney’s ABC and ESPN properties. Starwave and the joint ventures, ABCNews.com and ESPN SportsZone, will become part of the Buena Vista Internet Group, which handles Disney’s web interests. With its own Disneykids site, Disney made the eighth most popular destination on the web this week, according to ranking engine 100hot.com. With its sights set on the same market, the web’s thirteenth most popular site America Online Inc has partnered with the FamilyEducation Company to build a network of ‘extended school communities’. FamilyEducation provide free web sites to schools and educational resources to teachers and parents. In return, sponsors like AT&T, Fleet Bank and Century 21 enjoy a captive and targeted audience. The partnership will see AOL providing keywords and promotional opportunities to FamilyEducation, as well as taking an equity stake in the company. á
