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February 15, 2006


Walt Disney has introduced a pay tv system
that delivers high-definition films to U.S. homes utilizing formerly free public television spectrum. How much Moviebeam will pay PBS is not immediately clear.


MovieBeam says it plans to offer first-run films from six of the seven film studios in standard digital-video format and high-definition films from Disney and Warner Brothers.


The video-on-demand service is aimed at heavy movie renters and initially will be offered in 29 U.S. cities, including New York, Chicago and Los Angeles, at prices competitive with renting the same movie at video retailer Blockbuster. Nevermind the string of datacasting failures.

MovieBeam was founded by Walt Disney four years ago, but appeared to have run out of steam when Disney took a $24 million write-down on the company last summer, reports Reuters. It was revived last month with a $48.5 million cash infusion from Disney, Cisco, Intel and three venture capital firms.

MovieBeam "datacasts," up to 10 new movies a week to subscribers using an exclusive transmission deal to send data signals over the Public Broadcasting System network. It's similar to the U.S. Digital Television (USDTV) system which also uses datacasting to deliver a "no frills" $19.95/month digital TV service to markets such as Norfolk/Hampton Roads, Va.; Dallas/Fort Worth, Salt Lake City, Albuquerque and Las Vegas.



MovieBeam settop boxes will carry Cisco's Linksys consumer electronics label and be sold through U.S. electronics retailers Best Buy, CompUSA and Sears. It will have a capacity for 100 movies, and will be priced at around $200, after a rebate, and a $29 activation fee.

First-run standard format videos will rent for $3.99 and high-definition videos rent for $4.99. Older movies in the catalog cost $1.99 for standard format and $2.99 for high- definition -- roughly in line with rates at video stores.


 
"This instrument can teach, it can illuminate, and yes, it can inspire. But it can do so only to the extent that humans are determined to use it to those ends. Otherwise it is nothing but wires and lights in a box."
- Edward R. Murrow, 1951


"If you're somebody who rents an awful lot of movies, this is potentially attractive," Forrester Research analyst Josh Bernoff said. "But, for the great mass of the movie viewing public, getting a separate set-top box just to get movies is an awfully big stretch."

Not mentioned by the press release is what will happen to PBS and ABC video programming when they're taken out for pay tv. Also problematic might be the ATSC standard that US broadcasters use. ATSC reception generally requires a rooftop antenna.

ATSC's gang of four rejected European-developed DVB standard, because there were no points in it for their own royalty sharing arrangement. Screw the consumers. Who cares if DVB, using multi-path rejecting COFDM, can often use indoor rabbit ears. ATSC is all about royalty money. Not service.

DailyWireless has a history of datacasting. You'd think James Barksdale, former Netscape president and Reed Hundt, former FCC chairman, could have come up with something better than this for the PBS Digital Futures Initiative. Don'tcha think?

The PBS national network is unique in that it can deliver over 100 million households in the U.S.

PBS just sold out. A bunch of wires in a box.

Originally posted by samc from Daily Wireless, remediated by yatta on Feb 15, 2006 at 12:54 AM