Studio Venture Could Usurp In Demand's Role.(Walt Disney Co. and Fox joint venture, Movies.com)(Brief Article)

Multichannel News, September, 2001 by UMSTEAD, R. THOMAS

The Walt Disney Co. and News Corp. moved to take total control of their video-on-demand destinies last week when they said they'd distribute films directly to cable operators -- and over the Internet -- through a joint venture. Desperate for studio product to help boost the industry's VOD fortunes, operators are anxious to talk to Disney and Fox about Movies.com, which will include new releases and library titles.

The joint venture could all but eliminate the need for VOD distribution "middlemen" such as In Demand and Intertainer Inc. But In Demand executives and other industry observers believe Movies.com -- as well as a similar venture announced last month by five other major Hollywood studios -- would find it more difficult to effectively deliver...

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