MovieBeam shutters on-demand video service

Wed, 12/19/2007 - 8:15am
Mike Robuck

MovieBeam, which was originally backed by the Walt Disney Co., has powered down its on-demand video service as its parent company reorganizes after filing for bankruptcy.

Disney sold MovieBeam to Movie Gallery in March for less than $10 million, but MovieBeam went under despite $100 million in funding. Movie Gallery, the nation’s second-largest video rental chain, filed for bankruptcy in October.

MovieBeam sent movies over-the-air to a set-top box (STB) with an antenna, which meant it was limited to a market of 30 metropolitan areas in the U.S. The company had just 1,800 subscribers when it ceased operations

The cost of the STB was $250, along with a $30 activation fee, and movies cost anywhere from $1.99 to $3.99, with an additional charge of $1 for HD content.

According to the Associated Press, Disney began testing MovieBeam in 2003, and the list of backers included Cisco and Intel.


Share This Story

You may login with either your assigned username or your e-mail address.
The password field is case sensitive.