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By SARA FISHER

Staff Reporter

At first glance, WhatsHotNow.com seems like a standard Internet start-up until its list of individual investors is pulled out.

Among the financial backers of this tiny Marina del Rey-based e-commerce company are former Universal Studios Inc. Chairman and Chief Executive Frank Biondi Jr., WebTV President Steve Perlman, former HBO Chief Executive Michael Fuchs and Marvel Entertainment Chief Executive Avi Arad.

These heavy-hitters are betting that WhatsHotNow.com which was founded by Robert Fried, once president of now-defunct Savoy Pictures will thrive in its specialized niche of creating e-commerce systems for the entertainment and sports worlds.

“The company represents a terrific idea, and it’s the only real player devoting itself exclusively to that niche,” Biondi said.

Fuchs echoed that sentiment, adding, “The company can be its category leader, with a system and approach that cannot be easily duplicated.”

Fried, a veteran entertainment executive who remains an active producer at Sony Pictures Entertainment, started out in 1996 to launch a general Web design firm catering to movie studios. He quickly discovered that the nascent field was already crowded with competitors. He also discovered, however, that the established design companies typically farmed out the online-store component to an e-commerce specialist.

So that’s what Fried created. His company has emerged as a developer of online stores that peddle studio-licensed merchandise. It handles everything from online design and inventory management to warehousing and shipping.

Often the Internet company’s role is transparent. When online shoppers click their way to a store, they are transferred seamlessly to WhatsHotNow’s operation without appearing to leave the main studio site.

The company counts Fox Broadcasting Co., Fox Sports, Comedy Central, MTV, and Sony’s Game Show Network among its clients. Current projects extend beyond the studio world, including online stores for the fan-oriented Web sites of musician Alanis Morissette, boxer Evander Holyfield and Teen magazine.

“Studios first were reluctant to try something new and different, like e-commerce,” Fried said. “Then they said ‘no’ because they wanted to build the stores themselves. Then they realized that they weren’t retailers and began outsourcing. We were there and waiting.”

Fried added that even studios with active in-house Internet divisions often outsource the construction of e-commerce systems. He declined to be more specific, citing non-disclosure agreements.

One of WhatsHotNow.com’s leading assets is its management team. Robert Hollander, director of the $1.5 billion licensing program for the 1996 Atlanta Summer Olympic Games, was named president and CEO in early April. Fried himself is also a major draw.

“Rob (Fried) is one of the few people in Hollywood able to bridge the entertainment and technology worlds,” said Perlman. “It’s pretty impressive to see this kind of start-up straddle the two cultures, and Rob seems to be at the beginning of a new trend.”

While similar Internet companies are virtually guaranteed to emerge, analysts know of no existing direct competitors to WhatsHotNow.com and having several years of experience will give the company a significant advantage over any later entrants.

With $5 million in capital recently raised from its individual investors, the company plans next month to launch its own retail site, which will directly sell its clients’ products, rather than be linked to client sites. In fact, the company is looking to emerge as a type of reference guide to pop culture an intent reflected by the company’s name.

WhatsHotNow has been in a position to see what branded merchandise is popular at any given time, based on sales. Comedy Central’s show “South Park” and Sony’s “Godzilla” products were the big things last year, but they have been outpaced by the fast-selling items related to Fox’s television shows this season.

“We are a barometer for what’s hot now,” Fried said. “The content of our site and the branded items we sell function as a measure of popularity for all pop culture.”