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LOS ANGELES (Reuters) - Online movie download site CinemaNow
on Thursday unveiled an updated service with new features that for the first
time include the ability to own digital copies of movies for about the price of
a DVD. CinemaNow and its rival Movielink currently offer digital
films that can be downloaded and stored on a computer hard drive for a short
period of time in a way that resembles renting movies. Under its "download-to-own" service, CinemaNow
will offer older titles like surfing classic "Endless Summer" and
music concert films such as one from Tupac Shakur for $14.99 "We believe the market, going forward, won't just be
about a rental model but also about a sell-through model," CinemaNow Chief
Executive Officer Curt Marvis told Reuters. He said the booming popularity of DVDs has proven that
people want to own movies to replay and CinemaNow, which is majority owned by
Lions Gate Entertainment Corp. (LGF.TO: Quote,
Profile,
Research)
(LGF.A: Quote,
Profile,
Research)
, wants to push the market forward. Other new features are progressive downloading, meaning a
user can begin viewing a film in as few as 30 seconds after starting a
download. Previously, customers had to wait until the download was finished
before viewing. Movielink has a similar progressive downloading feature. Customers can watch a movie without being connected to the
Net -- good for travelers using laptop PCs -- and CinemaNow has improved its
browser for shopping among the 1,700 titles that are now available, which is an
increase of 200 movies. A TURNING POINT? To be sure, the movies CinemaNow is offering for sale are
older, but Marvis said his company had to prove the business model could be
viable before the studios were willing to sell their films through the download
service. More high-speed, broadband connections
have been installed in homes, making speedy digital downloads
consumer-friendly. Also more people are becoming accustomed to the technology. The studios realize that if they don't get involved now,
they face sacrificing the business to free movie swap sites and could see
declining revenues like the music industry has. "People will look back and say that around 2003 and
2004, how people get movies (into the home) really began to shift," Marvis
said. He said CinemaNow sees about 1 million unique users a month
and converts roughly 30,000 of those to customers who pay anywhere from $1.99
to $4.95 to rent a movie for 24 hours to 72 hours, depending on the title.
Subscriptions are also available for $9.95 a month and $49.95 for a year. Last year at this time, the company was showing "about
one-tenth of that" in terms of paying customers. CinemaNow, which
originated in the dot-com boom and survived the bust, is not yet cash
flow-positive but Marvis said he hopes to get there this year. However, he said
it is now well-capitalized. Along with Lions Gate, CinemaNow counts Blockbuster Inc.
(BBI.N: Quote,
Profile,
Research)
and Microsoft Corp (MSFT.O: Quote,
Profile,
Research)
among its investors. Movielink is a joint venture of the various film studio
divisions of Time Warner Inc. (TWX.N: Quote,
Profile,
Research)
, Viacom Inc. (VIAb.N: Quote,
Profile,
Research)
, Sony Corp. (6758.T: Quote,
Profile,
Research)
, Vivendi Universal (EAUG.PA: Quote,
Profile,
Research)
(V.N: Quote,
Profile,
Research)
and Metro-Goldwyn-Mayer Inc. (MGM.N: Quote,
Profile,
Research)
Jen -- |
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