Disney Shutting Down Moviebeam Service

The LA Times is reporting that Disney is ending the MovieBeam service and the future is uncertain.

The company plans to close its experimental video-on-demand service this week in all three of its test cities. Disney spokeswoman Michelle Bergman said the shutdown was necessary to upgrade systems as the company seeks potential partners to explore MovieBeam's "next phase."

The story cited one possible reason for the move:

Some studio executives feared the service could cut into Disney's lucrative home video sales.

It was an interesting concept but faced serious competition from Blockbuster, Netflix, pay-per-view and low-cost retail DVD's.

One problem I have with video-on-demand is the limited time you have to watch a movie before it gets deleted and you have to pay again. I've purchased movies from these services and had them expire before I could watch them. I wonder if this is built into the business model? Do they pay the studio if you don't watch a movie?

Via PVRblog.

Comments

[skebenin]

VOD service needs to be flat-fee, perhaps with a reasonable limit (5/week?). That would alleviate the time-to-watch concerns somewhat, as long as it doesn't count till watched (or at least started).

If VOD is just another pay-per-view at $5 a pop, I'm definately not interested, and I don't think a lot of other people would be either. 25¢ a pop maybe, but not $5.

NetFlix was originally at pay-per-rental model (about $4 per, if memory serves). Their business didn't start to really take off till they changed over to a monthly flat fee approach.

"One problem I have with video-on-demand is the limited time you have to watch a movie before it gets deleted and you have to pay again. I've purchased movies from these services and had them expire before I could watch them"

you don't pay a nickel for film you don't watch with moviebeam. they started out with 24 hour peiod but moved to 48 hours for one price $1.99. ie iew it as many times as you like within 48 hours for $1.99

I would not say this service is "shut down." My sis was part of the trial. they will definately be starting this up again. Disney made more money than licensing from rentals. They need to rework the infrastructure. it worked fine butthere are a boatload of revenue streams with a new network.

The problems they had are actually solved by current technology (the infrasturcture was setup two years ago).

Push datacasting is already successful and growing in the UK with BSkyB. For a huge segmeent of the market it makes more sense than rental stores, rental by mail or VOD.

the commentor above me doesn't udnerstand how this push datacasting is fundimentally different than VOD, which is extremely limited in selection for any given time. Moviebeam had no such constraint.

Ultimately film content owners are going to market their own material. If netflix proved anything it is that people are flexible about how they get the films. I doubt any large studio is going to lose money to a middleman any longer than it has too.

I do think one line in the stroy was wrong:
"Some studio executives feared the service could cut into Disney's lucrative home video sales."

this line is not from disney whicc alreay knows disk rental with coping is killing their home sales.

[skebenin]

In point of fact, unless otherwise stated I assume all modern VOD services use bulk datacast. The term VOD has expanded - it is not limited to 'immediate watch' mechanisms - and dedicated delivery is too wasteful of bandwidth.

Besides, the delivery technology has absolutely no bearing on my comments. My points stand.

[computer headset]

-