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To: Frank A. Coluccio who wrote (4988)8/16/1999 7:41:00 AM
From: Frank A. Coluccio  Respond to of 12823
 
MORE STREAMING VIDEO WEB SITES DEBUT

August 16, 1999

COMMUNICATIONS DAILY via NewsEdge
Corporation : Field in race to build cinemas in
cyberspace has grown more crowded as additional
companies announced plans to stream movies and
other video on Internet. Most prominent was Santa
Monica- based Trimark, independent studio with
large movie library. Others included newcomer
MovieFlow.com, Huntington Beach, Cal., start-up
that's been busily acquiring rights to content.

After signing deal with Broadcast.com earlier this
year for screening films on Internet, Trimark
announced CinemaNow, new subsidiary to form its
own streaming video Web site. Site will "prelaunch"
in Oct. before full rollout in Feb., said Curtis Marvis,
CEO of new company, ex-pres. of 7th Level and
former production executive. Which films will be
screened on site and when remains undecided, but
company plans it to be "premiere online destination"
for "independent, art house and niche-oriented
feature-length motion pictures." Site also will sell
DVD and VHS versions of films.

Marvis said new site won't conflict with
Broadcast.com because that's " aggregator" of
different types of content while CinemaNow will be
home specifically for independent films. He sees
Internet as "just another distribution medium" that
will augment home video, theaters, etc. He said he
can foresee day not too far off when contracts single
out digital delivery rights to films as separate
category.

Citing potential of Internet and broadband, Mark
Amin, chmn. of Trimark Holdings and CinemaNow,
said "we feel our early start in this medium will
contribute greatly to our future success."
CinemaNow will use Microsoft and RealNetworks
technology to stream films. Marvis said that rather
than offering movies on PPV basis, he envisions site
as screening "vast majority" of films free to
consumers, supported by advertising and
sponsorships, similar to free TV. TV model for
movies is very successful, he said, with networks
still paying "incredible sums" for films people have
seen many times.

Already streaming full-length videos over Web is
MovieFlow.com. Although its Pres. Glenn Gearhart
said company's video programming is limited now --
especially for those using only standard 56 kbps
modem -- but more will come by end of year.
Company plans to offer 8 video channels 24 hours
daily. It has bought rights for 10,000 films -- many of
them old Westerns and war movies -- and anywhere
from "2,000 to 3,000" of them should be available at
site by year-end, Gearhart said. At this point,
visitors with 56 kbps modem can see such footage
as cartoon shorts at site, while those with Digital
Subscriber Line (DSL) already can see "10 or 12"
full-length movies streamed at about 300 kbps, he
said. To watch movies at site, user needs
QuickTime 4 player, which can be downloaded free
from site. Movies are free and "a lot of it is going to
continue to be free" although " ultimately, we'll
probably charge" for certain videos," he said. Site is
being subsidized in part by advertisers, he said.

Another cyberspace video debut comes from
N.Y.C.-based Sputnik7.com, which is offering
preview of upcoming animated theatrical film Perfect
Blue. Although Sputnik7.com spokeswoman said
only small section of movie is being shown at its
Web site now, it plans to offer more in future. It will
be starting channel for popular Japanese animations
in fall and plans to stream independent films as well.
Company also plans to offer custom CD service.

Limiting itself to movie previews on Web now is
Philadelphia- based Video Pipeline, which says it
has 10,500 of them in its library. Company said it
expects to double that number in next 12 months,
with goal of having preview for every video on market.
Previews are streamed by Video Pipeline over
retailers' Web sites. Company uses Microsoft
Windows Media Player and Encoder.

Focusing on shorts and interactive features for Web
is L.A.- based WireBreak Entertainment, new
content production and distribution company whose
CEO is David Wertheimer, former Paramount Digital
Entertainment pres. Company said its Web site - -
www.WireBreak.com -- will start next month with 4
original interactive "Digital Shows." Besides
in-house works, company will stream original
content from outside producers.

Software retailer Trans World Entertainment (TWE)
is expanding Internet role, too. TWE's Web site --
www.twec.com -- has become charter retailer for
launch of RealNetworks' RealGuide, new
comprehensive source of streaming media available
on Web. As part of agreement between companies,
www.realguide.real.com each week will advertise 3
songs, one movie and one videogame that are
available for sale at TWE's site. Consumers who
want to buy any of selections will be linked directly
to site. TWE already is streaming live and canned
events via "On Stage" section on site, using
RealNetworks' RealAudio and RealVideo. But TWE
Mdsg. & Mktg. Exec. Vp Jim Litwak said full-length
movies haven't been featured yet. He said "at some
point" TWE plans to enter Video- On-Demand
(VoD), "but that will be down the road."

As legitimate video streaming grows, so do pirated
uploads. Recent box-office hits continue to
proliferate online, including American Pie, The Blair
Witch Project, Eyes Wide Shut, Star Wars:
Episode I -- The Phantom Menace, Summer of Sam.
Recent N.Y. Times report quoted Mark Curcio, chief
exec. of Blair Witch distributor Artisan
Entertainment, as saying his company marketed
movie extensively on Web but didn't intentionally
leak copy of it. Artisan streamed its theatrical film
Pi, using Microsoft's Windows 4.0, through
Sightsound.com site in April as part of experiment
to test pay-per-view possibilities on Web.

[Copyright 1999, Warren Publishing]