Wave Interactive Network Combines Forces with William Morris Agency and Simon & Schuster to Drive Revolutionary Pay-Per-Use Multimedia Programming and Distribution; Strategic Relationships include development support for retail and CablePC channel and new licensing models

Business Wire, Jan 23, 1996

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Jan. 23, 1995--Hollywood talent agency William Morris, publishing giant Simon & Schuster and Wave Interactive Network today announced two separate business agreements for supporting development and distribution of compelling multimedia software to consumers on a pay-per-use and try-before-you buy basis.

The agreements between William Morris and Wave Interactive Network and Simon & Schuster and Wave Interactive Network will result in the distribution of consumer entertainment, interactive multimedia and other content recruited and provided by the William Morris agency and Simon & Schuster through a revolutionary distribution model now being implemented by WIN.

WIN's technology gives consumers greater access to interactive content by allowing them to sample software titles before a purchase, rent titles or pay by "game," "episode" or "chapter" usage.

William Morris announced that they will represent WIN and take an equity position in the company. The agency's New Media Group will also provide assistance in launching a CablePC channel for high-speed, low cost distribution of software using WIN's distribution model. William Morris and WIN are already in discussion with a number of companies developing various components of PC-based broadband systems.

Simon & Schuster will provide content that will take full advantage of the unique characteristics and merchandising opportunities provided by WIN's new electronic distribution channel. Content will be contributed from Simon & Schuster's library of 350,000 copyrights and may also include content created especially for WIN. The company plans to work with WIN to secure PC manufacturers' support and to encourage retail support of the pay-per-use channel.

The announcements were made today at Multimedia West, sponsored by the Red Herring Magazine.

"WIN's distribution model allows for large libraries of content to be delivered, for the first time, at a minimal cost, which means that consumers can access a broad range of multimedia titles much in the same way they have access to entertainment formats like home video," said Steve Kram, Chief Operating Officer, West Coast, William Morris agency.

"Working together with WIN, we will be able to solve the distribution bottleneck that has, until now, slowed the development of interactive multimedia," Kram said.

"Simon & Schuster's strategy takes advantage of all forms of electronic delivery, including the creation of virtual shelf space to provide greater consumer access to content," said Peter Yunich, President of Simon & Schuster Interactive. "Utilizing WIN's distribution channel will also provide incremental revenue from new components, game levels and character enhancements. Simon & Schuster Interactive titles can be delivered to an active installed base of users allowing us to capture and hold market share in the interactive multimedia marketplace."

Steven Sprague, President of WIN, said the equity position taken by William Morris and the content-provider agreement with Simon & Schuster will result in significant acceleration and acceptance of WIN's model to combine electronic metering and cost-effective transaction processing using a variety of interactive platforms to bring multimedia content directly to the consumer.

"The power and influence of the William Morris Agency brings our concept of distribution to a broader range of content suppliers who have been looking for ways in which to successfully invest in and publish interactive software. WIN's content library will now include the very best of what Hollywood and Silicon Alley has to offer in terms of multimedia." Sprague added that the William Morris position in WIN will make it not only easier to attract content suppliers, but also cement relationships that ensure that the WIN distribution model is successful.

"By distributing through WIN, Simon & Schuster can broaden its distribution and provide low-cost access to its titles. Using this distribution model allows Simon & Schuster to better target their end consumers and develop a usage based revenue model. WIN is providing the lowest-cost solution for delivering interactive multimedia to the home consumer."

The CablePC channel -- one of several ways to distribute the WIN channel -- augments all of the two way technologies either in the market today or planned for implementation in the future. Combining data broadcast feed a nd a consumer metering device provides an efficient distribution channel where the consumer only pays for what is used and the intellectual property owner benefits from that use. The proposed CablePC channel will be capable of delivering a variable rate data broadcast feed with capacities in excess of 10 gigabytes of content per day --the equivalent of a CD-ROM every two hours -- through any of the broadband systems that are put into place.

Paul Bricault, of the William Morris New Media Group, said that "WIN is the first company to unlock the holy grail of multimedia distribution. They have figured out how to measure and charge for both narrow and broad band usage of content."