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  Disney Announces VOD Venture
Time: 14:03 EST/19:03 GMT | News Source: Video Store Magazine | Posted By: David Gasior

Walt Disney Co.'s plan to debut a video-on-demand (VOD) service called Moviebeam in a trial rollout this fall may be more than another delivery channel: CEO Michael Eisner's remarks to the National Association of Broadcasters conference make it clear it is a shot across home video's bow as well.

"In the analog world, this business focuses on a structured sequence of release windows – from theatrical to video to pay-per-view to premium cable to network broadcast, etc.," he said. "In the digital world, we will have to rethink and compress the sequencing in order to adjust to the fact that digital delivery will make possible quicker and more direct distribution to consumers."

Moviebeam will use a proprietary set-top box that offers the same functions as a DVD player, according to a Disney fact sheet. It will operate as a direct-to-consumer service, bypassing cable, satellite and Internet service providers.

The service will use set-top boxes that can store 100 movies and will offer subscribers 10 new movies a week using existing broadcast technology, Eisner said. The rollout will take place in Salt Lake City and two other cities yet to be announced.

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