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Five major studios to distribute movies online.(Brief Article)(Statistical Data Included)
Five major motion picture studios announced they have entered into a joint venture to create an online, "on-demand movie service." The studios said recently released films, as well as content from their video libraries, will be delivered digitally to broadband Internet users in the United States.
The studios involved are Metro-Goldwyn-Mayer, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros.
The studios said further details, such as a name for the joint venture and a launch date, will be announced at a later time.
Matt Bailey, an analyst with Webnoize, a company that monitors digital entertainment industries, characterized the move as "ambitious" and said the studios are building for the future.
"The video-on-demand (VOD) market is proving popular with consumers and it is a motivating factor for the studios," said Bailey. "There have been successful VOD trials with cable TV subscribers. People like to be able to watch movies when they want, without going to the video store and with no late fees. The video rental market is now $8 billion a year, and VOD will be a part of that."
"The studios are thinking further ahead with distributing over the Internet. That is pretty ambitious," he added.
The studios cited figures that said there are more than 10 million ...
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