Just one of the many "killer apps" to be facilitated by DSL...
cbs.marketwatch.com
Blockbuster, Enron in VOD deal
By David B. Wilkerson,
CBS.MarketWatch.com
Last Update: 6:54 PM ET Jul 19, 2000
NewsWatch
Latest headlines
HOUSTON (CBS.MW) - Viacom's Blockbuster video retail unit and
Enron Broadband Services have agreed to a long-term pact to distribute
movies-on-demand from Blockbuster's gigantic library, the companies
said Wednesday.
Financial terms were not disclosed.
Under a 20-year deal, Enron and Blockbuster will
launch the service in several U.S. cities by the end
of this year. Next year, Blockbuster plans to add
other domestic and international markets to that list.
Consumers will be able to choose movies through
an on-screen display, and gives them VCR-like
control (pause, rewind, stop) of those selections.
The video-on-demand service will be streamed into
viewers' homes via high-speed digital subscriber
lines (DSLs). Listen to an interview with the CEOs
of Blockbuster and Enron.
Shares of Blockbuster (BBI: news, msgs) lost 1/16
to 9 15/16, while Enron Corp. (ENE: news, msgs)
added 1/16 to 72 9/16.
Blockbuster shares are close to their 12-month
low, but analysts say Wednesday's announcement
should have been a catalyst for the stock. See Media Report.
Viacom (VIA.B: news, msgs) stock rose 1 9/16 to 68 1/16. (Through its
CBS unit, Viacom owns a significant stake in MarketWatch.com, the
publisher of this report.)
Blockbuster will provide content for the service and market to its
customers. The retailer will also sell DSL through its nationwide network
of stores.
Enron will handle the encoding and streaming of the service over its
broadband network infrastructure, the Enron Intelligent Network. Enron
will also store the entertainment content and provide customer service.
The service will be expanded to other entertainment categories, including
games and Internet services, which can be accessed either through the
television or PC.
"These agreements," said John Antiocco, chairman and chief executive of
Blockbuster, in a statement, "give first-mover advantage to the involved
companies that should enable each of us to capture a significant share of
what industry experts project will be a multi-billion dollar annual business.
It's the ultimate 'bricks, clicks and flicks' strategy."
Verizon (VZ: news, msgs) (formed by the recent merger of Bell Atlantic
and GTE), SBC Communications (SBC: news, msgs), Covad
Communications (COVD: news, msgs), Qwest, Telus and ReFlex
combined to design the architecture for the distribution of the service.
"With Blockbuster's extensive customer base and content, and Enron's
network delivery application and the capabilities of the distribution
providers, we have put together the 'killer app' for the entertainment
industry," said Kenneth Lay, chairman and CEO of Enron. |
