Disney-Owned MovieBeam Service Launches This Week amid Broad Industry Support

Business Wire, Sept 29, 2003

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BURBANK, Calif.--(BUSINESS WIRE)--Sept. 29, 2003

Entertainment and Technology Leaders Team to Deliver

New Movies-On-Demand Offering, Resetting the Standard

for In-Home Entertainment

The Walt Disney Company (NYSE:DIS) today announced the launch of its MovieBeam(SM) on-demand movie rental service. MovieBeam will give consumers instant access in their homes to recent DVD and video releases, as well as a wide variety of popular favorites, from almost all of the major studios.

This week, MovieBeam will launch in Jacksonville, Fla.; Salt Lake City, Utah; and Spokane, Wash. Consumers in those three markets will have the ability to rent films from their homes without the inconvenience of trips to and from the video store and without the possibility of incurring rental late fees.

The MovieBeam receiver -- manufactured by Samsung Electronics -- is a first-of-its-kind device that automatically receives movies, stores them on its hard-drive, and gives consumers the opportunity to view them on their schedule. MovieBeam always offers 100 movies in full digital quality, and every week, about 10 new movies are transmitted via a digital wireless signal to the MovieBeam receiver's small indoor antenna, replacing 10 titles. The data transmissions take the form of secure data streams and are sent through the broadcast spectrum of television stations owned by ABC and National Datacast's network of PBS stations. MovieBeam will work whether or not a consumer has a cable or satellite television subscription.

The MovieBeam service will offer a broad range of movies, including popular action, drama, comedy and family titles. MovieBeam currently has agreements in place with DreamWorks SKG, Metro-Goldwyn-Mayer Studios, Miramax Films, New Line Cinema, Sony Pictures Entertainment, Universal Studios, Warner Bros., 20th Century Fox Studios and Walt Disney Studios. MovieBeam will feature current titles from all of these distributors in the "video-on-demand (VOD)" window. MovieBeam will also license library titles from several of these distributors. (There is an attached list of the 105 movies that will be featured on MovieBeam at launch.)

"MovieBeam provides a unique, new and convenient approach to watching movies at home and further demonstrates Disney's commitment to using new digital technologies to develop new businesses that deliver content direct-to-consumers, generate growth and combat the threat of piracy," said Peter E. Murphy, Senior Executive Vice President and Chief Strategic Officer of The Walt Disney Company. "The innovative MovieBeam business model relies on existing broadcast spectrum to achieve significant bandwidth to the home with limited initial investment. MovieBeam also uses state-of-the-art technology from Samsung for this next-generation service."

"Samsung is excited to be working with a talented team from Disney to pioneer this amazing breakthrough in digital home entertainment," said Gee-Sung Choi, President of the Digital Media Network Business of Samsung Electronics. "MovieBeam represents everything Samsung is striving to accomplish as a global leader in digital convergence products. By making powerful new technologies available yet invisible to the user, MovieBeam conveniently delivers instant fun and entertainment for all who love movies. Samsung and Disney are transforming home entertainment technology as we know it."

Key MovieBeam features and benefits include:

-- An ever-changing collection of 100 New Releases and Popular

Favorites, containing a diverse offering of Action, Comedy,

Drama and Family movies

-- An easy-to-use guide that lets viewers choose movies by

Category, Title, Actor, Director or Rating

-- The ability to start movies whenever consumers want, 24 hours

a day -- with familiar controls like "stop," "pause,"

"fast-forward" and "rewind" -- so consumers can enjoy the

movies on their schedule

-- Free full-length previews, available for all movies on the

service

-- Easy installation and use, requiring only a standard

electrical outlet and a phone connection for billing (phone

line used only once per week)

-- Compatibility with existing cable or satellite services - but

does not require either; nor does it require an outdoor

antenna

-- Parental controls to set weekly spending limits and to

restrict access to selections based on Motion Picture

Association of America ratings

-- No up-front equipment cost

Studio Support for MovieBeam

MovieBeam has received a broad level of Hollywood studio support.

"We are excited to make our films available through the MovieBeam secure and innovative service, which enhances the consumer experience by offering broad choice and greater convenience," said Peter Levinsohn, Executive Vice President, Twentieth Century Fox Pay Television and Pay Per View.