Audio Video News

Walt Disney's Movies.com won't be streaming any Fox Entertainment Group releases any time in the foreseeable future.

On April 26, Fox officially withdrew from a partnership with Disney that would have put both companies' films online—or on cable systems—in a video-on-demand service through Movies.com, which offers trailers, reviews, and film listings. A Fox announcement stated that "the joint venture was not an appropriate initiative at this time." The former partners will go their own ways in pursuing "alternative strategies to distribute their films to the growing broadband audience."

Late in 2001, Fox and Disney formed their partnership while Sony Pictures, Paramount Pictures, Metro-Goldwyn-Mayer, Warner Brothers, and Universal Studios banded together to form Movielink. The US Department of Justice immediately questioned the exclusive natures of both ventures as possible antitrust violations. Movielink partners later announced that they would be willing to share their films with other video-on-demand services.

Movies.com adhered to its plan for exclusive distribution of Fox and Disney films for at least the first 30 days of their availability, a decision that aroused concern among antitrust officials. Explaining its withdrawal from the venture, Fox cited "potential regulatory process and logistical issues." Fox has not ruled out future VOD ventures, pending the examination of "technological and marketplace developments." Disney spokeswoman Michelle Bergman said her company believes that "the strategy has opportunity," but wouldn't elaborate as to what form a Disney VOD service might assume.

Movies.com's VOD service is one of several Hollywood startups that have been scuttled. A couple of years ago, DreamWorks and Imagine Entertainment teamed up with POP.com, a venture intended to develop short films specifically for the Internet, but abandoned the effort after only a few months. Its successor, countingdown.com, does offer some amusing short features.