NewCardDude
06-17-2004, 05:15 PM
Anyone have a hack for these? Just kidding.... Onto the story..
LOS ANGELES (Reuters) - In an effort to reach movie consumers directly, the Walt Disney Co plans to compete with video renters like Blockbuster Inc through a low-cost service called Moviebeam it is expanding this fall, company officials said.
In interviews this week, Disney executives said Moviebeam -- a computer drive that connects to a television and stores and shows movies like a DVD player -- is a first step in a broader technology push aimed at becoming more like a retailer in new, digital business arenas.
By shedding its current position as a wholesaler that packages films on videos or DVDs, Disney would reap all the rental revenue instead of sharing it with retail outlets.
Initially, Wall Street analysts see little financial impact on the media giant that earns revenue of $27 billion a year from theme parks, movie studios and TV networks like ABC. But they say it could prove to be a savvy strategic move to take advantage of increasingly cheap content delivery and storage.
"This is an opportunity for us to have a direct relationship with movie consuming customers," said Peter Murphy, Disney's chief strategy officer. "We are starting at movies, but it doesn't have to stop at movies."
Moviebeam is expected to be a first step toward delivering movies, TV shows, sports and news to a range of products such as advanced cell phones or personal media players -- portable gadgets the size of small books that store and play video.
But Disney executives said that before focusing on those future devices, they wanted to show they could reach consumers with a real product in a proven market.
LOW COST, HIGH POTENTIAL
Moviebeam is a set-top box like a satellite, cable, or other TV receiver. Its hard drive can store 100 movies, and an antenna receives new films via broadcast airwaves.
Consumers rent the box for a monthly fee ranging from $6.99 to $8.99. They pay another $1.99 to $3.99, depending on the title, to rent each film for a period lasting 24 hours.
Disney launched Moviebeam last September in Salt Lake City, Utah, Jacksonville, Florida and Spokane, Washington. Last month, it said it would be in three more cities this fall.
LOS ANGELES (Reuters) - In an effort to reach movie consumers directly, the Walt Disney Co plans to compete with video renters like Blockbuster Inc through a low-cost service called Moviebeam it is expanding this fall, company officials said.
In interviews this week, Disney executives said Moviebeam -- a computer drive that connects to a television and stores and shows movies like a DVD player -- is a first step in a broader technology push aimed at becoming more like a retailer in new, digital business arenas.
By shedding its current position as a wholesaler that packages films on videos or DVDs, Disney would reap all the rental revenue instead of sharing it with retail outlets.
Initially, Wall Street analysts see little financial impact on the media giant that earns revenue of $27 billion a year from theme parks, movie studios and TV networks like ABC. But they say it could prove to be a savvy strategic move to take advantage of increasingly cheap content delivery and storage.
"This is an opportunity for us to have a direct relationship with movie consuming customers," said Peter Murphy, Disney's chief strategy officer. "We are starting at movies, but it doesn't have to stop at movies."
Moviebeam is expected to be a first step toward delivering movies, TV shows, sports and news to a range of products such as advanced cell phones or personal media players -- portable gadgets the size of small books that store and play video.
But Disney executives said that before focusing on those future devices, they wanted to show they could reach consumers with a real product in a proven market.
LOW COST, HIGH POTENTIAL
Moviebeam is a set-top box like a satellite, cable, or other TV receiver. Its hard drive can store 100 movies, and an antenna receives new films via broadcast airwaves.
Consumers rent the box for a monthly fee ranging from $6.99 to $8.99. They pay another $1.99 to $3.99, depending on the title, to rent each film for a period lasting 24 hours.
Disney launched Moviebeam last September in Salt Lake City, Utah, Jacksonville, Florida and Spokane, Washington. Last month, it said it would be in three more cities this fall.