CinemaNow, Movielink forge deals

By Susan Rush
From The September 9, 2002 Edition Of CED Broadband Direct

A technology deal with IBM has moved Movielink one step closer to launching its movies over the Internet service by year's end. Separately, CinemaNow Inc. has sealed a licensing agreement to deliver Warner Bros. pictures on-demand over the Net.

Movielink, which was born from a joint venture formed between five major studios to deliver films on demand to broadband users in the United States, has turned to IBM Corp. to power its online movie service. Although financial terms were not disclosed, IBM will provide managed hosting services, including systems operations and network management.

The five studios that own Movielink include Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. When the service launches, each studio will determine when to release and how much to charge for its own content.

The deal with Warner Home Video will enable CinemaNow to offers its on-demand users a handful of pictures from Warner Bros., including new releases such as "Harry Potter and the Sorcerer's Stone," and older films such as "Dial M For Murder" and "Mars Attacks." New releases will cost $3.99 for 24-hour access, while older films are available for $2.99.

CinemaNow offers roughly 2,500 on-demand movies, and is in negotiations with others major studios for additional content.