LOS ANGELES - Hollywood studios will start selling digital versions of films
such as "Brokeback Mountain" and "King Kong" on the Internet this week, the
first time major movies have been available online to own.
The films
can't be burned onto a disc for viewing on a DVD player. Still, the move is seen
as a step toward full digital distribution of movies over the Internet.
Six studios said they would announce Monday that sales will begin through the
download Web site Movielink. The site is jointly owned by five of the seven
major studios.
Warner Bros., Universal Pictures, Sony Pictures, Paramount Pictures,
Twentieth Century Fox and MGM will offer some first-run and older titles on
Movielink. New films will be priced similar to DVDs ¡ª between $20 and $30 ¡ª
while older titles will sell for $10 to $20.
In a separate announcement, Sony and Lionsgate said they will sell films
through the CinemaNow site.
Only films from The Walt Disney Co. will not be available, although both
services say talks are ongoing.
"Digital delivery hasn't arrived until the major studios allow home
ownership, and now they have and now digital delivery is very real," said Jim
Ramo, Movielink's chief executive.
Studios will sell some new films online the same day they become available on
DVD. Most films will be made available within 45 days.
Studios began renting films online several years ago as a way to combat
illegal downloading. Movies have been available through the Internet 30 to 45
days after hitting video stores, with rentals lasting just 24 hours for viewing
primarily on computer screens.
Digital delivery of video grew rapidly after Apple Computer Inc. began
selling episodes of TV shows through its iTunes online store last October.
This year, devices powered by new Intel computer chips and TV service
delivered over the Internet will allow more consumers to watch Web video on
their TVs instead of their computer screens, a key factor in downloading to own,
analysts said.
Studios are being cautious about selling films online in part because DVD
sales produce more profit than box office receipts.
But studios are also preparing for the day when major retailers such as
Wal-Mart and Amazon.com begin offering their own movie download services.
"The important thing is to embrace the future, respect the economics of DVD
but move forward into digital delivery," said Ben Feingold, president of
Worldwide Home Entertainment at Sony Pictures.
The films available on Movielink can be stored indefinitely on a computer
hard drive or transferred to as many as two other computers. The movies can be
played on a TV if the computer is part of a home network.
A copy can be burned to a DVD as a backup. Discs can be played on up three
PCs authorized by Movielink but cannot be viewed on a standard DVD player
because of special security coding.
Consumers will not be able to transfer the films from a PC or laptop to a
handheld portable viewing device. But that capability should be available
sometime within the next year, Ramo said.
Films on CinemaNow will be playable on just one computer. The company said it
eventually expects studios to allow consumers to burn movies on DVD and transfer
them to portable devices.