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Trimark in Net movie pact
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February 23, 1999: 12:49 p.m. ET
Film distributor, broadcast.com swap shares in deal to distribute films online
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NEW YORK (CNNfn) - Shares of Trimark Holdings Inc. soared Tuesday after the movie distribution company announced a stock-swap agreement with broadcast.com to distribute its library of films over the Internet.
The pact will allow the companies to work together to show first-run movies, previews and live premieres online, the companies said.
Under terms of the agreement with broadcast.com, a leading broadcaster of Internet video programming, Santa Monica, Calif.-based Trimark (TMRK) will exchange 9 percent of its common stock, or 412,362 shares, for the equivalent value of broadcast.com stock.
The agreement between the two firms comes during the infancy of Internet broadcasting. But both companies, not surprisingly, see the new medium as revolutionizing entertainment and information delivery the way television did in the 1950s.
Dallas-based broadcast.com (BCST) made headlines this month by delivering the Victoria's Secret spring fashion show over the Internet. The company said a record 2 million people watched the lingerie event online.
Broadcast.com runs 24-hour a day broadcasts including those from radio and television stations and sports and news. By joining with Trimark, its delivery expands to include movies.
Some films will be free of charge, supported solely by advertising revenues, while others will be available on a pay-per-view basis, the companies said.
After gaining more than 60 percent after the announcement, shares of Trimark were up 1 13/32 to 8 7/8 in late-morning trading.
Shares of broadcast.com meanwhile, was up 8 to 78 5/16. 
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