05.02.2002 12:00 AM
Fox Withdraws From Proposed Broadband VOD Joint Venture
Fox Entertainment Group is withdrawing from a joint venture it had been pursuing with The Walt Disney Company, an on-demand service for films and other entertainment called Movies.com.

The service planned to make content available to consumers with access to digital on-demand cable systems or broadband Internet connections. Fox and Disney have now decided to pursue other strategies for distributing films to the broadband audience. Fox indicated that, after considering the potential regulatory process, logistical issues and technological and marketplace developments, the venture was not appropriate at the moment. Disney will continue to operate the existing Movies.com site and license and aggregate feature film content from multiple studios for on-demand services.

Fox may decide to license its films nonexclusively to Disney's distribution initiatives after future negotiations.

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