• by June 14, 2004

There are digital downloads for music, so why not for movies?

Word came today, as expected, that RealNetworks and Starz Encore Group will launch a Web-based movie subscription service. This is the same service that the pair had announced in December 2002. We thought it was an extension of the original agreement but apparently not. The original plan was to introduce the service in 2003 but the companies postponed, attributing the delay to lack of market demand and low broadband penetration rates.

We're not sure about the demand for such a subscription service, but clearly, broadband penetration rates are up. Other than mobile professionals tethered to their laptops during long flights or in lonely hotel rooms, how many people really want to watch a flick on a PC within the confines of a Real Player? Actually, we understand that the movie will fill the entire computer screen but still ....

Some details: The new service is called Starz! Ticket on Real Movies. Cost: $12.95 per month. The subscription fee will offer consumers access to nearly 100 movies that can be watched at any time during the month. They can watch the movies as many times as they wish during the month. Films are deleted from the hard drive when Starz no longer offers them. Each movie carries an expiration date and has a special code to prevent it from being played after its expiration date.

It will be interesting to see what the market demand actually is for this service.