Interactive media companies are learning that it's better to join 'em than try and beat 'em.

After last year's epidemic of layoffs at Internet companies that overestimated the demand for Web content, media firms are looking to create entertainment that can also be delivered through TV and removable media. "This is an organic convergence of technology, very similar to my dad reading the paper and watching television," said Chris Swain, vice president of programming at Spiderdance, which creates Web content that can be synched to TV broadcasts. Swain said people now spend 16 hours a week watching television, 12 hours surfing the Web, and six hours doing both. In London, Toy Story 2 debuted using a digital delivery system that allowed the movie to be shown not with a traditional print, but a DVD -- or even a satellite system. The typical movie print costs around $3,000, and widespread rollouts require around 4,000 prints, he said. Moving to a digital distribution network could provide alternative entertainment since theater seats are left empty between movies. Kafno said theaters could create new revenues streams by filling up idle time with sporting events or interactive game nights. Television channels are looking at repackaging their content and putting it online as another revenue opportunity. At the Discovery Channel, interactivity between the TV and website is being used to generate more compelling content and draw in advertisers.