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MGM to Release New and Library Titles on Divx
SANTA MONICA, Calif. and HERNDON, Va., March 31 /PRNewswire/ -- Expanding the platforms for its 4,000-title film library and new films, Metro-Goldwyn- Mayer Inc. (NYSE: MGM - news) today jointly announced with Digital Video Express that a multi-year agreement had been reached between the companies under which MGM titles will be available on Divx discs. In addition to an array of library titles, all new MGM video titles will be released on Divx concurrent with video rental releases.
The Divx system is an enhanced DVD (Digital Versatile Disc) model that provides digital-quality picture and sound and significant anti-piracy protections, as well as greater consumer convenience.
''For MGM, the Divx concept simply expands the venues for our product and, as a new means to reach the consumer marketplace in a quality format, is consistent with our strategy of maximizing our library assets,'' said David Bishop, President, MGM Home Entertainment. ''With its new paradigm for delivering feature films into our homes, Divx has the potential to grow the digital marketplace, to attract new DVD followers, and to enhance the quality of the home theater experience.''
''We believe that many home video consumers will appreciate the opportunity to purchase and view MGM titles -- including the newest and most successful of our James Bond series, Tomorrow Never Dies -- through the Divx system,'' he added.
''We are pleased to have earned the support of this venerable studio,'' said Richard L. Sharp, chairman and chief executive officer of Digital Video Express, developer of the Divx system. ''MGM's support for Divx helps build momentum for the launch of Divx in two cities later this spring and expands the number of feature titles available in this convenient and economical digital format.''
Divx is a revolutionary new system for watching feature movies at home. Consumers purchase a special encrypted movie disc that contains a two-day viewing period. The 48-hour viewing window begins not when consumers leave the store, but only after they begin playing the disc for the first time, either on the day of purchase, the following week, or months later. Because the disc never has to be returned, consumers incur no late fees and can economically build a home video library. Additional viewing periods, including the option to convert the disc to unlimited play, can be purchased through the Divx player. Divx also expects to make ample supply available so consumers can easily find the movies they want to watch. Divx-equipped DVD players will play all basic DVD discs, but the lower-cost Divx discs cannot be played on basic DVD players.
Following a two-city introduction this spring, Divx discs and players will be available nationally beginning in late summer. Five other studios have long-term agreements with Divx. Digital Video Express is a partnership between Richmond, Virginia-based Circuit City Stores, Inc. (NYSE: CC - news, KMX - news), the nation's leading retailer of name-brand consumer electronics, and a prominent Los Angeles entertainment law firm. For more information, visit Divx on the Internet at www.divx.com
Metro-Goldwyn-Mayer Inc. is actively engaged in the worldwide production and distribution of entertainment product, including motion pictures, television programming, home video, interactive media, music, licensed merchandise, a 4,000-title film library, a 6,700-title home video library, and a significant television library. The company's operating units include MGM Pictures, United Artists Pictures, Orion Pictures, Goldwyn Films, MGM Worldwide Television Group, MGM Distribution Co., MGM Home Entertainment and Consumer Products Group, MGM Music, and MGM Interactive, among others. For more information on MGM, visit the MGM Online mgm.com.
This announcement contains forward-looking statements that are subject to certain risks and uncertainties, including, but not limited to, risks associated with the development of new business concepts. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations are contained in the companies' SEC filings. |