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From...

Wired kids will pay to play

June 26, 1998
Web posted at: 3:00 PM EDT

by Dianne See

(IDG) -- San Francisco -- With the Internet buzzword "community" on the tips of their tongues, conference attendees and organizers of Digital Kids '98 debated the issues of developing businesses geared toward the wired child.

In a panel chaired by Jupiter vice president Adam Schoenfeld, industry leaders from Disney, Nickelodeon, National Geographic, Channel One, Microsoft and Scholastic weighed in on four issues: how children's sites will make money, the convergence of children's television and the Web, the wiring of schools and protecting children's privacy online.

Most panelists were reluctant to say that they were aggressively pursuing children's business on the Internet. They chose instead to declare their commitment to creating appropriate content for kids, stressing lofty ideals rather than lucrative marketing opportunities.

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Jake Winebaum, chairman of Disney's Buena Vista Internet Group, said his company was much more concerned with providing a "total family experience and the best family experience" than with creating "maximum page turns." Steve Webb, a senior vice president at Nickleodeon, echoed this sentiment, adding that his company was always looking for ways to "better serve kids."

Jupiter's Schoenfeld suggested that the subscription Web site model had been written off too quickly. Winebaum noted that in his experience with Disney's online service, Disney's Blast, parents were willing to pay for a subscription as long as they could ensure that the site was safe for their children. He also noted that on average, subscribers spent as long as 30-40 minutes with each session.

Winebaum's statement was backed up by a report released today by Jupiter Communications. The study, performed by NFO Interactive, reported that 68 percent of parents polled were "very concerned" about children's use of the Internet, and that 53 percent were open to the idea of paying for a site that could monitor content and chat for kids.

Privacy and the wiring of schools raised issues of what role the government should play. Panelists expressed a rather contradictory position: While criticizing the government for failing to act quickly and ensure that schools across the country were wiring up the nation's children, they were also critical of the idea that government might try to control how children's privacy online is enforced. Winebaum noted that plans currently being proposed include asking businesses to get written permission from a child's parent in order for the businesses to communicate with the child.

Shoenfeld described the possibility of the government stepping in as leading to the "balkanizing" of the Internet, with children being cordoned off to only a few sites, rather than having full access to the Web. The specter of government control prompted the familiar call for a bit of pre-emptive self-regulation.

"We have to act responsibly before government acts," said Winebaum, "Or we won't have a chance at this [interactive advertising] business model."

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