‘The ultimate entertainment site’

by Matt Surman

     Hollywood talent agent Mike Ovitz is jumping onto the web to create—what else?—an entertainment site. Expect him to bring along a bevy of big-name stars.
     Once known as the most powerful man in Hollywood, and briefly the president of Disney, Ovitz is joining with former Disney Online president Richard Wolpert to launch a portal that he calls ‘’the ultimate entertainment site.’’
     CheckOut.com will offer entertainment information and give users a chance to listen to music, see videos and read news and archived stories about actors, musicians and game designers. Fans will also be able to buy celebrity merchandise directly from the stars, as well as purchase videos, CDs and electronic games.
     Most important, say its founders, will be the site's ability to personalize content once a user expresses interest in a subject. A returning user who has previously sought information on Meryl Streep, for example, will upon returning be directed to a page of   links, photos and film clips of the star.
     Wolpert is developing the CheckOut site for the Yucaipa Companies, the site's other major investor, and the group known for recently orchestrating the sale of Fred Meyer, Inc. to the Kroger Company.
      ‘‘This will definitely be a place the stars will want to go, where they can go directly to their fans,’‘ says a CheckOut.com spokesperson. The roster of stars will not be limited to clients of Ovitz's agency, Artists Management Group.
      Ovitz's connections could likely be the key to whether the site lives or dies, say analysts. The possible draw for celebrities, they say, is a cut of merchandise without studio intrusion.
     ‘‘This sounds like it's about putting talent into the driver's seat,’‘ says John Robb, an analyst at the Gomez Group, an e-commerce consulting firm in Concord, Mass. ‘‘This is a way for talent to break away from the studio and go straight to their fans and create a 'personal relationship' with thousands.’‘
     The site is expected to launch in mid-summer, and at this point its creators are remaining mum on its ad and marketing strategy.
     The challenge facing CheckOut.com is one facing many sites, says Peggy O'Neill, an analyst at Net Ratings—whether it’s effectively positioned to attract fan surfers.
     Internet users tend to think vertically, and rather than seeking out a general entertainment site they are more likely to seek their specific interest through a search engine, she notes.
     And while personalized content is more likely to hook users, the site will need skilled marketing to stand out from the growing heap of online entertainment sites. Well-established competitors include People.com and Entertainmentweekly. com, to name just two.
     ‘‘It comes down to how good the content is,'' says O’Neill. ‘‘Just having a name in traditional media doesn't guarantee success. A lot of little companies got famous without Ovitz.’’
     Ovitz, the co-founder of the Creative Artists Agency, has been trying to reposition his career after being bumped from his post at Disney in 1996. He made an ill-fated investment in a beleaguered Broadway production company before starting AMG, which represents such clients as Robin Williams.

-Matt Surman is a Los Angeles-based writer.