p2pnet.net News:- A US Department of Justice antitrust investigation into Movielink, the online video-on-demand venture involving Sony (Columbia-TriStar Pictures), Warner Bros, MGM, Paramount and Universal, has concluded the partnership is acceptable.

Collectively, these Big Five movie studios account for some 50% of the domestic box office revenues each year in the US.

However, the DoJ doesn’t think the formation of Movielink in August, 2001, harms “competition or consumers of movies,” it says in a statement, going on:

“The Division considered several theories of competitive harm but ultimately determined that the evidence does not support a conclusion that the structure of the joint venture increased prices or otherwise reduced competition in the retail markets in which Movielink competes.

“The Division will continue to monitor activity in these emerging markets as part of its ongoing enforcement of the antitrust laws.”

Customers “rent” movies for $1.99 to $4.99 depending on the title and can download and “store” it for up to 30 days. Once the movie begins to play, users have 24 hours to finish watching before the file is automatically deleted.

“Following a movie’s initial release and exhibition in movie theaters, movie studios typically license films for in-home viewing by consumers through a variety of different types of distribution methods,” says the DoJ, continuing:

“The primary methods for in-home viewing are home video (which includes VHS and DVDs), pay-per-view (PPV), video-on-demand (VOD), pay television, and basic television (such as broadcast and basic cable). Historically, the studios have attempted to stagger the release dates to these different distribution methods, and each sequential release period is referred to in the industry as a viewing ‘window.’ For example, a film is generally available in the home video window on VHS and DVD for a certain period of time before it is released to PPV, with pay cable and eventually basic television following later in the sequential release pattern.”

This entry was posted on Wednesday, June 9th, 2004 at 5:57 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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