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News Stories Tuesday, June 15, 2004   
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Lights, Action, PCs! RealNetworks, Starz roll out broadband movie service


The market for Internet-based movie services continues to develop new acts. This week RealNetworks Inc. and Starz Encore Group LLC co-launched a service that gives consumers unlimited access to more than 100 movies through broadband connections to their PCs.

The service, Starz! Ticket on Real Movies, is capitalizing on a growing consumer interest in having less restricted access to movies through a subscription model as opposed to pay-per-view, says John J. Sie, chairman, CEO and founder of Starz, a provider of digital movie services. “In the cable and satellite world, the ‘all you can eat’ subscription business model has proven much more popular than the transactional pay-per-view model,” he says.

The service charges a monthly fee of $12.95, for which subscribers can download an unlimited number of movies from the available selection, a spokeswoman says. Although Starz has rights to hundreds of movies, it expects to make available slightly more than 100 at any one time.

Subscribers can access the service through either Starz.com or RealNetworks’ Movies.Real.com, where they can also download a free RealPlayer movie player. Subscribers can also purchase for $19.95 the premium versions of RealPlayer, which offers additional video controls like brightness settings.

Subscribers must have broadband access of at least 600K speed, the spokeswoman says, noting that some broadband services provide speeds as slow as about 300K. Individual movie downloads should take about 30 minutes, she adds.

Netflix, the online rental service of DVD movies delivered through the mail, plans to offer its own Internet-delivered video-on-demand service next year. But it says Internet-based delivery will take years to develop into a popular service due to limitations on broadband access. "People want great selection, fast and easy delivery at an affordable price," a spokeswoman says. "Video on demand doesn`t provide that today. Selection is limited and, for the most part, is delivered to your PC when the vast majority of people want to watch movies on their TV."

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