Disney Hands Networks Control Of SitesDisney Hands Networks Control Of Sites

Walt Disney Co. Tuesday became the latest media company to acknowledge the challenges of maintaining independent Internet properties when it said it would transfer control of ABC.com, ABCNews.com, and ESPN.com from its Internet arm, Walt Disney Internet Group, to the corresponding broadcast operations. Beginning in October, execs at the three sites will begin reporting to both their parent networks and to WDIG president Steve Wadsworth.

The move comes less than six months after Disney shut down its high-profile Go.com and laid off 400 employees, and it seems to be an admission that the company can't compete with online powers America Online, Microsoft's MSN, and Yahoo.

The changes aren't expected to result in any layoffs, says a WDIG spokeswoman, and there will be no impact on Walt Disney's Disney.com, Family.com, and DisneyAuctions.com sites, all of which are run by WDIG. "The objective is to achieve full integration between the online properties and the corresponding offline properties," the spokeswoman says, adding that the move is purely an organizational change intended to drive sales and marketing opportunities across the ABC, ABCNews, and ESPN brands.

Disney's Internet arm will continue to handle technical infrastructure issues and CRM initiatives related to ABC, ABCNews, and ESPN, the spokeswoman says. It also will retain responsibility for the wireless strategies for delivering content from all of Disney's sites to mobile devices.