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News Corp., Disney in pact
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September 5, 2001: 6:02 p.m. ET
Joint venture, Movies.com, will offer entertainment on demand next year
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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. 
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