Much like a Google search, Club Penguin’s new chat box allows kids to use predictive text to type in a message.

As shown in the screenshot, words appear as the user begins typing — in much the same way that Google tries to predict what you are searching for. But unlike Google, there’s a limited number of phrases kids are allowed to use, in compliance with Internet regulations concerning young children.

This is the first major change Club Penguin has made to its chat in six years, and Lane Merrifield, co-founder of Club Penguin and now EVP of Disney Online Studios, acknowledged that it’s a pretty obvious way to do it.

That’s because filtering, in particular, is really complicated, Merrifield said. Club Penguin has a team of 200 to 300 workers in seven countries which constantly monitors discussions and kicks out any kids who misbehave.

With this new system, Club Penguin has examined years of chat logs to discover how kids communicate and to learn what phrases they use on a regular basis. The predictive engine will have 300,000 phrases to start, and will support English, French, Portuguese and Spanish.

For instance, a kid may type in “Want to go to the … ” and the engine will suggest “dock, lighthouse, nightclub or beach.”

By using predictive text, kids who may not know how to type or even spell can communicate much quicker. The game’s core demographic is between the ages of 7 and 11; typing proficiency often doesn’t accelerate until the age of 10.

Using the old Club Penguin system, kids would type in a phrase, which then would have to be approved. Spelling errors could cause a completely innocent phrase to be rejected.

Chat has become one of the most popular features in Club Penguin, with kids exchanging more than 56 million chat messages a day.

In all, 150 million accounts have been created on Club Penguin, and more than 21,000 kids log in daily.

Along with the new chat system, Club Penguin is making a few other social changes.

It will now be easier to locate friends by adding them to a friend list. Previously, kids were spread out across 150 servers in order to properly balance the load of users. Now they can find friends and jump to their locations more easily.

Yesterday, BoomTown reported that Mark Walker, the head of the powerful Yahoo News site, was leaving the Internet giant for another company.

That company, sources said, will be Disney, where Walker will be leading a major overhaul of its flagship Disney.com site.

The property, which has largely been a promotional and aggregation play for Disney’s many family-oriented offerings–such as its popular Disney Channel cable television shows–still sees 20 million unique visitors monthly.

Walker will report to Jimmy Pitaro, the former Yahoo media head who is now co-president of Disney’s online division with John Pleasants. Walker worked directly for Pitaro at Yahoo.

Walker’s job, said sources, will be to find a new direction for Disney.com, including adding original programming to the site, as well as more personalization for its users.

It’s a big task for Walker, since Disney’s various Web efforts have a long and often rocky history, from its disastrous purchase of Infoseek in 1998 and efforts to create the Go.com portal to its savvy acquisition of several innovative kid-focused sites such as Club Penguin in recent years.

Still, like many traditional media giants, Disney has never achieved the kind of digital success its spectacular brand has promised. The hiring of Pitaro and Pleasants by CEO Bob Iger was a sign that the company was going to make some big changes again.

BoomTown will query Iger about all this at the ninth D: All Things Digital conference this summer, where he’ll be interviewed onstage.

Yesterday, after Disney named two longtime Internet execs–Playdom’s John Pleasants and Jimmy Pitaro of Yahoo–as co-presidents of its Internet unit, BoomTown did a longer interview with CEO Robert Iger about the entertainment giant’s next Web moves.

I always enjoy talking digital with Iger–who is pictured above in an interview I did with him in 2006 at the fourth D: All Things Digital conference–since he has been one of the old media moguls who seems unafraid of the challenges of new media.

While appropriately wary, Iger acted early and often in exploring digital initiatives at Disney (DIS) that others in Hollywood’s and New York’s media worlds were loathe to consider.

“I have tried to keep two obvious philosophies,” Iger said in a phone interview yesterday. “First, that our current business not get in the way of adopting new technologies, and, second, that our business belongs on these new platforms.”

Easy to say, of course, but it’s still nice to hear, given the longtime, incessant and ultimately wearying push-and-pull between those who make bucks making content and those who make bucks making technology.

“My premise is that technology is about an opportunity for us,” said Iger. “And we cannot will it away and should not…because you can’t stop these things from happening.”

That’s presumably the impetus behind the hiring of Pleasants and Pitaro (picture here, left to right).

With an assist by recent Disney board member and Facebook COO Sheryl Sandberg, Pitaro came to his attention earlier this year, Iger said.

Pitaro left his job as SVP of Media at Yahoo (YHOO) last week.

And Pleasants was CEO of Playdom, the online social gaming company that Disney acquired for $763 million in late July.

The pair, who will report directly to Iger as co-chiefs of the Disney Interactive Media Group, replace outgoing head Steve Wadsworth.

The shift is a big move by the entertainment giant and yet another attempt to clarify and bolster its Web strategy, which has had a long and often rocky history.

Under the previous regime of former CEO Michael Eisner, for example, Disney bought search engine Infoseek and tried to create a portal called Go.com.

That failed, and was one of many efforts to define the media company’s Web goals.

More recently, in 2008, Disney gathered most of its Internet properties within DIMG, under Wadsworth.

Still, money-making not been part of the mix. In its most recent quarter, DIMG lost $65 million on revenue of $197 million.

In the interview about the new structure, Iger said: “I think we’ve built a framework of assets, and now is the time to create a structure in a more focused way. In splitting the divisions, we can focus more on them better and in a way they deserve.”

He outlined the new set-up, which will have Pleasants focus on the online gaming and mobile landscape and Pitaro on the Web arena.

Iger said he felt Pleasants and Pitaro brought different backgrounds to the task, as well as longtime experience in the Internet arena.

He said that upon considering a fresh approach, he felt that Wadsworth was “spread too thin,” given all the various online arenas for Disney.

In fact, today, Disney owns a number of big Internet properties, including Disney.com, Family.com and Club Penguin, although there does not seem to be a particularly cohesive strategy among them.

Of course, that’s not surprise, given it is all part of a multifaceted media company with a variety of businesses.

Due to its powerful content assets, said Iger, it might be a perfect time for a more cogent plan. With the explosion of devices, such as the Apple (AAPL) iPad and others, the importance of cooperation between content and technology is more critical than ever.

“I think a lot of technology companies are really finally ready to handle more premium content in a way that is beneficial to all of us,” said Iger.

And, he added, it was time for Disney to get more involved in technology, which was the reason for the purchase of Playdom. The move has made it more a publisher than a licensor.

“If we wanted to get significant in size, we need the investment to be greater,” Iger said about the big payout to get into the fast-growing social gaming arena.

And that has meant less emphasis on console games, on which he said Disney had focused too much in the past.

No longer–now Iger said has planted Playdom, as well as its purchase of the Tapulous music app start-up, in a spanking new facility in Palo Alto, Calif., right in the heart of Silicon Valley.

“We need to be part of the culture and world there in a significant way,” said Iger. “And I believe I have convinced the senior team within Disney that Playdom is a huge opportunity for them.”

That includes online gaming related to units such as sports at ESPN, as well as other Disney brands, such as the theme parks or Marvel, into Playdom games.

While Pleasants will run his part of the show from Silicon Valley, Iger said, Pitaro will work out of Los Angeles on Web initiatives and in upgrading the Disney online experience.

“We want to make Disney sites more of a community and entertainment center than a marketing hub,” said Iger. “Where is gets complicated is the levels of exclusivity and the other places we want to distribute our content.”

That includes being part of the premium Hulu online video site, as well as perhaps even creating a Disney-branded pay service, but also being open to working more with Netflix (NFLX).

And that means a multifaceted approach to all kinds of payment models for Disney online, from subscription to advertising-supported to pay-per-view.

“In certain areas, we will be very aggressive with our content and in others less aggressive, to the extent that each offers us revenues,” said Iger. “Obviously, where there is potential cannibalization, we will be a little more careful…but we are going to push forward.”

When asked about the most obvious management issue–the possibility of clashing with two head of one division (MySpace, anyone?), Iger said that while there was overlap, he thought the jobs Pitaro and Pleasants had to do were also wide-ranging and different enough.

Plus, added Iger, “They both report directly to me and I am there to see to it that it works.”

In other words, as Disney continues to move forward into the digital future, the content and technology buck stops, as it should, at Iger.

Jimmy Pitaro, who is leaving his job running the powerful media properties at Yahoo (YHOO), has taken a job as co-president of Disney Interactive Media Group, with John Pleasants.

Pleasants was CEO of Playdom, the online game company that Disney acquired for $763 million in late July.

(Both are pictured here, with Pleasants on the left and Pitaro on the right.)

The appointment of the pair, both of whom will report to Disney (DIS) President and CEO Robert Iger, is a big move by the entertainment giant.

And it looks like another large-scale attempt to clarify and bolster its Web strategy, which has had a long and often rocky history, and is the first major reset under Iger.

It is also against a backdrop of financial losses. In its most recent quarter, for example, DIMG lost $65 million on revenue of $197 million.

“I think we’ve built a framework of assets, and now is the time to create a structure in a more focused way,” said Iger in an interview this morning with BoomTown. “In splitting the divisions, we can focus more on them better and in a way they deserve.”

He outlined the new set-up, which will have Pleasants focus on the online gaming and mobile landscape and Pitaro on the Web and online advertising arenas. Iger said he felt Pleasants and Pitaro brought different backgrounds to the task, as well as longtime experience in the Internet arena.

Disney will need that going forward.

Under the previous regime of former CEO Michael Eisner, for example, Disney bought search engine Infoseek and tried to create a portal called Go.com. That failed, and was one of many efforts to define the media company’s Web goals.

More recently in 2008, Disney gathered most of its Internet properties within DIMG, under Steve Wadsworth. He recently stepped down from his job.

Today, Disney owns a number of big Internet properties, including Disney.com, Family.com and Club Penguin, although there does not seem to be a particularly cohesive or profitable strategy among them.

Of course, that’s not a surprise, given they are part of a multifaceted media company with a variety of businesses.

Because of those powerful content assets, in fact, now might be a perfect time for a more cogent plan. With the explosion of devices, such as the Apple (AAPL) iPad and others, the importance of cooperation between content and technology is more critical than ever.

News of the appointments of Pitaro and Pleasants was rumored earlier this week by Silicon Alley Insider and the Hollywood Reporter.

As an interesting aside, Iger said that he was introduced to Pitaro via Facebook COO Sheryl Sandberg, as well as her husband, David Goldberg. Sandberg is now on the board of Disney, and Pitaro came to Yahoo via Launch Media, which was co-founded by Goldberg.

More to come, obviously, but here is the official press release from Disney:

JOHN PLEASANTS, JAMES PITARO NAMED CO-PRESIDENTS,
DISNEY INTERACTIVE MEDIA GROUP

BURBANK, Calif., October 3, 2010–John Pleasants and James Pitaro have been named Co-Presidents, Disney Interactive Media Group (DIMG), it was announced today by Disney President and CEO Robert A. Iger.

John Pleasants, a well-respected new media executive whose career has included top jobs at digital commerce and game companies, will lead Disney’s multi-faceted digital games businesses, including online, console, social and mobile. He will also continue to run Playdom, the fast-growing social games publishing company acquired by Disney earlier this year.

James Pitaro, an experienced Internet executive known for consistently delivering great branded web experiences to consumers, will oversee Disney Online, the home of Disney branded web and social media sites.

The new structure at DIMG is intended to enhance the strategic focus and responsiveness of the company’s digital games and Disney Online businesses in a marketplace characterized by swiftly evolving consumer behavior and technologies. The structure is designed so that the two businesses can share consumer insights and technological resources and jointly take advantage of growth opportunities.

“Our rapidly growing Disney digital businesses will benefit greatly from the deep experience and distinct leadership skills shown by John and Jimmy,” Iger said. “John has shown incredible agility and skill in helping companies achieve success in the ever-shifting digital games business, while Jimmy has vast knowledge of the online world and has been hugely successful at creating and building audiences around branded online content.”

“Both have outstanding track records in anticipating trends and delivering to consumers creative, innovative and successful experiences and products,” Iger added. “As Co-Presidents, I’m confident they will make Disney’s digital content and businesses even more robust and successful.”

Pleasants, who will be based in the Bay Area, will oversee Disney’s overall games strategy and its global network of game development studios, including recently acquired mobile publisher Tapulous. The games group will include such popular online virtual worlds as Club Penguin and World of Cars as well as console and mobile titles.

Prior to joining Playdom as CEO in June 2009, he was President of Global Publishing and Chief Operating Officer of Electronic Arts Inc., where he led the company’s online and mobile business units and its strategic expansion into online and social games. He previously served as President and CEO of Revolution Health and CEO of Ticketmaster, which included Match.com, CitySearch.com and Evite.com.

“I am extremely excited to be working with the DIMG team, and our colleagues across Disney, to advance the mission of enlivening people everywhere through the world’s best interactive entertainment,” Pleasants said. “Bob’s vision and commitment to excellence in new media positions our organization to achieve great things.”

In leading Disney Online, Pitaro will be responsible for enhancing the consumer experience on the company’s numerous Disney-branded web and social media sites, including Disney.com, the number one global site for kids and families, and Family.com. Pitaro will also oversee Disney’s social media marketing agency, DigiSynd.

Pitaro joins Disney from Yahoo! Inc. where he was Vice President and Head of Media. In that role, he significantly expanded Yahoo!’s original video, branded entertainment and editorial content and pioneered using data to enhance the consumer web experience. Pitaro led the successful expansion of Yahoo! Sports prior to being named to lead all of Yahoo!’s media properties, including its news, finance, entertainment and lifestyle sites. Previously, Pitaro ran Business Affairs for online music site Launch Media and practiced law at several New York firms.

“I’m honored to be joining the Disney family and energized to start working with the DIMG team. I’ve admired Disney for as long as I can remember and am looking forward to bringing my experience to the company and partnering with John to advance our online businesses,” Pitaro said.

As Co-Presidents, they will be replacing former President Steve Wadsworth, who over many years established a firm foundation for DIMG’s growth. Pleasants and Pitaro will report to Iger and will co-manage DIMG enterprise functions, including business affairs, finance and human resources. They will assume their new roles on October 18, 2010.

The tweens and twenty-somethings who flock to the site can still keep playing games there without paying. But the company wants to convince a few of them to start shelling out $5 a month for subscriptions that gives them access to bonus goodies and credits they can use for power-ups and other virtual goods. The credits will first be used on the site’s new “Hover Kart” game and will eventually be rolled out it to the rest of its 11-game portfolio.

Virtual goods + subscriptions + online games isn’t a new idea by any stretch. It’s really big in Asia, and there are several companies trying to port the model to the U.S. Some, most notably Activision Blizzard’s (ATVI) World of Warcraft and Disney’s (DIS) Club Penguin, are enjoying success on a large scale. I’m just noting OMGPOP’s foray for a couple reasons:

1) Gotta give the company credit for sticking to its guns, from an intellectual property perspective. The site has no problem taking games that have been successful for other people and offering refurbished versions of its own. “Blockles,” its first game, is a Tetris clone. And Hover Kart, its newest one, is an homage to Nintendo’s Mario Kart, which absconded with many of my hours in the mid-90s.

The folks at OMGPOP (and their backers, which include Twitter investor Spark Capital) think this is kosher because they’re not using the games’ trademarked names or characters–only their game play/mechanics (see: the Scrabble/Scrabulous/Lexulous imbroglio). But they’re already spending money defending a Tetris lawsuit, and it will be interesting to see what Nintendo’s legal team has to say about the new game.

2) Gotta give the company, and founder Charles Forman, credit for evolving. Two years ago, Forman was a Y Combinator graduate running a site called iminlikewithyou that was supposed to be some kind of flirting/dating/Facebook hybrid. It got glowing praise from the likes of Om Malik, but it was hard to see how it was going to amount to a business. So Forman changed direction and turned it into a game site.

Fast-forward to today and it’s still not clear if there’s a successful business yet–the site has sold a couple T-shirts, but that’s about it. But at least you can see how it might work. And compared to a lot of its Web 2.0 peers, that’s saying something.

After factoring out one-time charges and write-offs, Bob Iger and company earned 43 cents a share on revenue of $8.1 billion. Wall Street had been looking for 40 cents and $8.15 billion, respectively.

Iger: “We had a difficult second quarter due to the weak economy and other factors.”

The bright spot for the entertainment conglomerate is the same one you see at every media giant these days: Disney’s cable business. Revenue at ESPN and the Disney Channel was up four percent and operating income was up five percent. That’s because those powerhouse channels have locked in payments from cable operators that show up regardless of the economy’s state.

And that’s why you won’t see (much) programming from those channels on Hulu–there’s no way Iger is going to rile up the cable operators who pay for that programming by running it for free online.

Disney’s interactive group, which includes videogames and sites like Club Penguin, but not revenue from ABC.com and sales from Apple’s (AAPL) iTunes store, saw revenue decline 17 percent, and operating income drop two percent.

Here’s the breakdown by segment (click to enlarge):

Write-down watch: Disney took $203 million in “impairment charges”–accountant-speak for “the stuff we bought back then isn’t worth much now.” That includes “$108 million related to radio FCC licenses and $46 million related to an investment in an Indian media company.”

This follows on the heels of a lousy February quarter in which the company didn’t hit expectations.

Disney (DIS) is the first of several big media companies to report this week. News Corp. (NWS) weighs in tomorrow, followed by CBS (CBS) on Thursday.

The Disney earnings call is starting now. I’ll listen in and update as warranted.

Disney CFO Tom Staggs on ad market, economy: “While we believe the pace of decline has generally stabilized, we believe ad buyers and consumers remain cautious.”

During Q&A, Iger has a long monologue about online philosophy, Hulu, etc., but my Webcast cut him off before he was finished. Don’t know whether to blame Disney or Time Warner Cable (TWC) for that one….

In any event, here’s my paraphrase of what I could get down, with a smattering of quotes:

“We found that as we move product to the Web…at least [with regard to] piracy that we’re aware of, there’s been a stabilization….We feel that if we don’t put it online…it will be demanded by consumers, and they’ll find ways.”

Research on cannibalization and piracy in general is inconclusive and some research conflicts with other research we’ve seen. “Some of this is instinct, by the way. It’s not all based on research.”

We feel media consumption is moving to the Web and that media consumption may be expanding. We think we’re better being online than not being online. We realize that Web monetization doesn’t exist yet, at least not at TV-like levels, but we believe that eventually it will.

A lot of the consumption that we’re seeing is incremental because it’s a different demographic. The average age of consumers watching ABC.com and itunes is younger than the average age of those watching network TV. The Hulu demographic is generally younger than prime-time network demographics. So we don’t believe it’s cannibalization.

In what is likely to turbocharge its heft in the digital space, according to an internal email sent out by Walt Disney (DIS) CEO Bob Iger, the entertainment company is combining its Disney Interactive Studios and the Walt Disney Internet Group.

The new unit, called Disney Interactive Media Group–will be headed by WDIG’s Steve Wadsworth.

WDIG has a wide range of properties, like Club Penguin and Disney.com. Disney Interactive Studios makes a range of games for Disney brands like “Hannah Montana” and “Wall-E.”

Here’s the memo, with email address removed:

From: Bob Iger
Sent: Wed Jun 04 19:44:22 2008
Subject: Disney Interactive Media Group (DIMG)

Bob

There are tools for dealing with the problem, most commonly, filtering software that attempts to bar sexual, violent and other objectionable material. But these can frustrate kids and parents, by either blocking too many things or not blocking enough.

Avatars help guide users

Some other approaches, such as the parental controls built right into the latest Windows (MSFT) and Macintosh (AAPL) operating systems, offer parents more control by allowing them to specify what Web sites a child can access. But that requires close and constant involvement by the parent as the child seeks access to more Web sites.

This week marks the launch of a parental-control service with a somewhat different approach. It’s called KidZui, and it aims to offer kids a safe subset of the Internet where they can roam freely without triggering parental worry. KidZui, for children ages 3 to 12, hopes to emphasize the positive, rather than the negative.

The service, from a San Diego company of the same name, claims to encompass 500,000 safe sites, photos and videos, ranging from pop culture to science, comics and games to history. You can watch the latest “American Idol” contestant, learn about dinosaurs, delve into history or visit popular kids’ sites, such as Webkinz and Club Penguin.

The sites, photos and videos included in KidZui are approved by a team of about 200 parents and teachers across the country, and are ranked by age, so that a site that might be right for an 11-year-old isn’t served up to a 4-year-old.

While a child can establish a list of friends in KidZui, and can share content with them, there is no instant-messaging or email function.

KidZui isn’t free, and it can’t be accessed via a regular Web browser. Instead, you must download a special KidZui browser, from kidzui.com, that runs on either Windows or Macintosh computers. I tested it on both platforms, and it downloaded quickly and installed smoothly.

The service nominally costs $99.95 a year, or $9.95 a month, but there is a 30-day free trial and an introductory rate of $49.95 a year, or $4.95 a month. It has no ads, other than those already present on Web sites kids visit.

A key selling point of the service is that busy parents can simply set up KidZui and trust that their kids will be safe online. To that end, the program can be optionally configured, so that a child can’t escape from it to use the computer’s standard browser, for example. A parent can set KidZui to launch when the computer starts up, in full-screen mode. In this mode, KidZui automatically disables or hides the common keystrokes, icons, commands and techniques that allow users to switch to, or to start up, other programs.

In addition, when KidZui is running in this locked-down mode, the child can be barred from quitting KidZui without a parent’s password. In my tests over the past week, I found some loopholes in this lockdown system, but the company plugged each leak I turned up. I can’t swear that a clever kid won’t be able to escape from KidZui, but the program blocks most obvious exits.

Inside the software, the company has tried to create a fun, lighthearted world. Each child is represented by a “Zui,” a cartoon-like character that can be customized with hair, clothing and other features. There are lots of sound effects, and kids can rate content with illustrated tags ranging from “best” and “cool” to “boring” or “gross.”

When a child types in a term like “ocean” KidZui offers a list of related terms as well, to guide further exploration. If a child types in a search term or a Web address that has been banned from the KidZui universe, a message appears saying “This page isn’t available on KidZui, but your parents can add it for you.” This applies not only to terms typed into KidZui’s own search bar, but also to terms a child enters at sites like Wikipedia or in the search boxes embedded in other sites. The main pages of Google and Yahoo can’t be summoned.

If a search or Web address is new to KidZui, a different message appears promising that it will be reviewed.

I did find some holes in this system. For instance, I was able to get to The Wall Street Journal’s Web site and do an internal search on “Spitzer,” which turned up a story on the former New York governor’s sex scandal.

Parents can get detailed reports about the KidZui activities of each of their children and can tweak the content they can see by adding specific types of material, such as “athletic violence,” and approving or blocking specific Web sites.

For parents who want to allow limited Web use by their young children without constantly micromanaging their online activities, KidZui may be worth a try, but don’t expect it to be perfect.

Email me at mossberg@wsj.com. Find all my columns and videos online, free, at the new All Things Digital Web site, http://walt.allthingsd.com.

After having just visited WeeWorld in London, an avatar-based site that allows mostly young people to create online personas for social networking and other activities around the Web, it was interesting to see Walt Disney last week forking over up to $700 million to own another popular social-networking site for “tweens” called Club Penguin.

As much as I despise that icky marketing term to signify kids on the cusp of becoming teenagers, to spend that much money to get its hands on that market is an interesting indicator of the desperation of older media companies to latch onto a big trend and also the perplexing development of the social-networking business, where the cart is so far in front of the horse that it’s almost laughable.

I have to give Canadian-based Club Penguin props for building a site in only two years that has attracted 12 million registered users and about 5 million monthly unique visitors–700,000 of whom pay a monthly fee of almost $6 to play in the virtual online space.

But its purchase price is still way high compared to its revenues (especially since no advertising is one of the attractions of this site to parents) and now sticks a large no-discount sticker all over the Web for such sites.

True, Club Penguin has been a raging success, especially compared to Disney’s own recent efforts at sites like Toontown. Perhaps that is due in part to that site’s not-so-punny catchphrase on top of its newspaper-like homepage: “The Best Game in the Tooniverse” with a price of “Five Jellybeans,” which just screams to kids: lame.

So Disney is paying the price for an inability to innovate online in the space–as it did before in an odd deja vu to a lot of Disney online efforts, including a premium site called Blast and when it bought Infoseek and turned it into the clunky Go portal.

Ponying up $350 million in cash with promises of $350 million more if certain performance criteria are met speaks volumes to me about this key problem Disney has long had on the Web–how to grow its original online media organically, beyond the basics of theme-park ticketing and other obvious stuff around its established products.

This time, Disney is not fooling around, it seems. “We plan to rename it Disney’s Club Penguin and to immediately use our Disney-branded properties such as Disney.com, Disney Channel, Radio Disney and our parks and resorts to raise its profiles,” said Disney CEO Robert Iger on a recent quarterly call. “We believe virtual worlds can extend and expand on the life of a franchise, expand our global reach for our entertainment content and allow us direct contact with our consumers in a more personalized and engaging way.”

Now, I have been a big admirer of the recent digital efforts of Iger, whom we interviewed at D4, such as his aggressive move into streaming and selling television content on the Web (how much do I love its ABC.com player, for example?).

Perhaps this is part of that drive, but it is unclear if paying these kind of prices will get Disney there, even without all the marketing muscle it brings to bear.

Even if Club Penguin is trumpeted all over the massive Disney universe from theme park to cable channel (that started immediately), the purchase is risky on a very basic level, given the cost and the nature of kids’ fast-changing preferences. Neopets? Webkins? And for us older demographic: Furby, Beanie Babies and Cabbage Patch Kids.

And, of course–and here I am really dating myself–the Pet Rock.

Not bad for Disney, either. The site currently boasts 12 million registered users, 700,000 of whom pay $5.95 a month for the ability to customize their penguin characters and decorate their igloos. How many more will do that once Disney throws its global marketing might behind the site? “Disney’s technological know-how, online capabilities and international reach will support global expansion of the Club Penguin franchise,” Disney CEO Bob Iger said yesterday during the company’s earnings call. “We plan to rename it Disney’s Club Penguin and to immediately use our Disney-branded properties such as Disney.com, Disney Channel, Radio Disney and our parks and resorts to raise its profiles. … We believe virtual worlds can extend and expand on the life of a franchise, expand our global reach for our entertainment content, and allow us direct contact with our consumers in a more personalized and engaging way.”

In other words, it’s only a matter of time before Buzz Lightyear and the Disney princesses appear as Club Penguin costume options and great piles of Club Penguin Puffles show up in local Disney stores. As Walt Disney’s brother Roy once said, “The sale of a doll to any member of a household is a daily advertisement in that household for our cartoons and keeps them all ‘Mickey Mouse Minded.’ ”