News Corp And Disney Make Deal

[wdwmaniac]

News Corp., Disney in pact

Joint venture, Movies.com, will offer entertainment on demand next year

September 5, 2001: 6:02 p.m. ET


NEW YORK (CNNfn) - Walt Disney Co. and News Corp. unveiled plans Wednesday to launch an entertainment service that will provide movies on demand starting next year.

The joint venture, Movies.com, will allow users to access movies and entertainment via their digital cable set-top boxes.

Consumers can also download a film using a broadband Internet connection to a computer hard drive and then play it back on a television or computer, Disney and News Corp. said in a joint release.
Los Angeles-based Movies.com will have a new management team and begin operations in 2002.

"Movies.com will be a new distribution channel that provides consumers with an unequalled level of flexibility, quality and choice and we are excited to be at the forefront of this new entertainment medium," Disney Chairman and CEO Michael Eisner said in a prepared statement.

Sydney, Australia-based News Corp. (NWS: down $0.29 to $32.61, Research, Estimates) and Burbank, Calif.-based Disney (DIS: down $0.35 to $25.36, Research, Estimates) will equally own the new operating company which is entering into distribution agreements with Disney Studios, Twentieth Century Fox, and Miramax Films.

New releases will be made available on Movies.com for a limited time period ahead of the traditional pay-per-view window. The venture will also offer recent and classic films from Fox and Disney.

The companies expect more than 10 million homes in the United States will able to access the services using either broadband Internet or cable.

Will this change the movies.com as we know it?

 

[MickeyMoose15]

It's good that relations with FOX are better now ever since Disney animated films were able to shut down the FOX animation studio in Phoenix, AZ.

 

[wdwmaniac]

Do you think we could see a Disney boy-out of News Corp? They already own Fox Family and alot of the Fox Kids TV show and Channels around the world and they also have ties with lucas too. Lastly they are making this new deal with Disney.

 

[MickeyMoose15]

Not if that old Murdoch is still in control of FOX!

 

[Goofster]

Speaking of which, when will we start to see the changes on Fox Family? I did see that one of their shows was being hosted at DCA, but that was about it.

 

[MickeyMoose15]

I think it would be a couple of monthes after they announced which would be probly October or November. The name will change then from FOX Family to ABC Family.

 

[wdwmaniac]

What are the ABC Family going to show? Are they going to keep the 13 days of Halloween and 25 days of Christmas?

 

[MickeyMoose15]

I have no idea but they have said that they will have some Fox Family shows like Power Rangers and will rebroadcast old ABC television shows and news specials like 20/20.

 

[<SRH>]

From what I have read, the partial intent of Disney with this new channel is rebroadcasting some of their shows from ABC. Television production is so expensive that Disney can sell advertising space on ABC for these shows. When they rebroadcast them on the new channel, they can resell the advertising space and make more off of each show than just showing it one time.