Disney delays MovieBeam expansion

September 6, 2004

Walt Disney’s MovieBeam will delay expansion into new markets until 2005 and is exploring new strategic partnerships, in a reversal of its previously stated plans, nearly a year after launching the on-demand film service.

MovieBeam uses TV broadcast signals to datacast digital video files to a set-top box. The set-top box can store up to 100 movies, which customers can view at their leisure for between $1.99 and $3.99 per film, plus a monthly equipment rental fee and a one-time activation fee.

Disney has plans in October to upgrade its service to current users of MovieBeam in Spokane, WA, Jacksonville, FLA. and Salt Lake City. It also will continue to accept new subscribers in those areas.

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