Major Studios Announce Plans for Premium VOD Service

Earlier this month, Viacom, its Paramount Pictures unit, MGM Studios
and Lionsgate announced that they have formed a joint venture that will
launch a premium VOD service and linear-TV channel in the fall of
2009. According to the companies, the venture will have access to
Paramount and Paramount Vantage titles released theatrically on or
after January 1st, 2008, and MGM, United Artists and Lionsgate titles
released theatrically on or after January 1st, 2009: it will have exclusive
access during the pay-television window to such recent and upcoming
films as "Iron Man," "Star Trek," "Cloverfield," "Shutter Island," "Love
Guru" and "Valkyrie" and various currently-in-production titles,
including new installments of the "Robocop" series, the companies say.
It will also have access to the five participating studios' movie libraries,
as well as to their new, original TV series. The deal between the
companies calls for Viacom to provide the new venture with
operational support, including marketing and affiliate services through
its MTV Networks division. "This venture has the potential to be a
game changer for the industry," Viacom president and CEO, Philippe
Dauman, said in a prepared statement. "We are building an innovative
service that will use traditional and new digital distribution
technologies to bring great film and television entertainment directly to
the consumer. By combining the output of Paramount with MGM and
Lionsgate, two film and television powerhouses, we are creating a
premium film and television programming brand with unique flexibility
to bring consumers the very best blockbuster movies and innovative
TV series."