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Disney to Test Video on Demand Service

Posted on: Tuesday, 8 April 2003, 06:00 CDT

LAS VEGAS (AP) -- Disney will begin testing its long-awaited video on demand service, dubbed "Movie Beam," later this fall, chairman and chief executive Michael Eisner said Monday.

Eisner, speaking at the National Association of Broadcasters convention, said the service will allow consumers to view up to 100 films when they wish.

Unlike current video on demand services, which send movie files over the Internet, Disney's system will use the same broadcast spectrum the company uses to send its ABC Television network to homes.

The system will be tested in Salt Lake City and two other markets this fall, the company said.

Disney is the last company to enter the video on demand marketplace. It announced a joint venture with 20th Century Fox in 2001, but that dissolved after Fox pulled out.

Five other movie studios have been operating a video on demand venture called Movielink since last year.

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Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.

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