The Walt Disney Company, Cisco Systems and Intel Corporation, through its investment arm Intel Capital, have invested US$48.5 million in MovieBeam, Inc, a newly formed datacasting entertainment venture.

MovieBeam provides a videos-on-demand service that debuts today across most major metro areas in the US.

According to the new venture, in the US$10 billion US movie-rental industry, 30 million households rent four or more movies per month – 80% of them new releases. The MovieBeam movies-on-demand service provides access to an ever-changing line-up of new releases and popular favourites from most major Hollywood studios. The service claims that there are always 100 movies available instantly, with up to 10 new titles automatically delivered digitally each week – including select movies in high definition (HD) – via MovieBeam’s over-the-air datacasting technology. 

“Digital technology is changing the face of entertainment, which is helping to transform peoples’ lifestyles and create exciting new business opportunities,” said Paul Otellini, president and CEO of Intel Corporation. “As the lines between computing and consumer electronics devices continue to blur, it is imperative that high-quality premium content be readily available and accessible. Such new services as MovieBeam are helping to deliver on this vision by providing consumers with greater choice and control over how they enjoy digital entertainment."

“There is a transition happening in the home entertainment market as consumers are moving toward platforms that provide on-demand access to content,” said John Chambers, president and CEO of Cisco Systems, Inc. “The convergence of traditional consumer electronics products with home networking technologies allows for the creation and deployment of new entertainment services that will give consumers greater control and a richer user experience. As MovieBeam continues to expand its offerings there will be a range of opportunities for collaboration to jointly deliver on this vision."

MovieBeam was incubated within The Walt Disney Company for nearly four years. A first generation of the service was deployed and tested in three cities for more than a year, beginning in September 2003. 

“Consumers have come to expect entertainment content when, where and how they want it, and with its increased reach, enhanced technology and support from investors like Cisco and Intel, MovieBeam will create that convenience,” said Bob Iger, president and CEO of The Walt Disney Company.