MovieBeam

MovieBeam was an American video-on-demand service developed within The Walt Disney Company and operated through its Buena Vista Datacasting subsidiary. Rather than using an internet connection, a conventional cable-video-on-demand platform, or a satellite-specific receiver, the service transmitted digital movie data through the vertical blanking interval of local over-the-air television broadcasts. Subscribers received the data on a dedicated MovieBeam set-top box, which stored the available films and allowed the customer to begin a rental at a selected time. The underlying delivery system used dNTSC technology licensed from Dotcast. MovieBeam content was distributed to participating television stations through National Datacast and embedded in their analog NTSC transmissions. The approach was intended to use otherwise unused broadcast capacity and to make a library of films available without requiring broadband internet access. The box could receive as many as ten new movies in a week, along with trailers, previews, and other promotional or bonus material. A telephone connection was used to communicate rental activity to MovieBeam's servers for billing purposes. The service offered a dedicated hardware experience for its period. The set-top box included HDMI and component-video outputs, coaxial and optical digital-audio connections, USB 2.0, and Ethernet ports. High-definition playback was available in 720p when the box was connected through HDMI or DVI-D. The hardware was sold for a one-time charge, reported as $149.99 in August 2007. Rental prices ranged from $1.99 for older standard-definition titles to $4.99 for newer high-definition releases, with each rental expiring after 24 hours. MovieBeam originated as a Disney-backed initiative and was spun off in January 2006. Its financing included investment from Intel, Cisco, Disney, Intel Capital, Mayfield Fund, Norwest Venture Partners, and Vantage Point Venture Partners, with reported investment totaling $48.5 million. On March 7, 2007, Movie Gallery acquired MovieBeam, Inc. as part of an effort to expand beyond physical video-rental stores. Movie Gallery said that the acquisition and the service's operating costs for 2007 were expected to total $10 million. The product faced structural limitations. It required a sufficiently strong and clear over-the-air television signal, and customers could receive films they did not want to watch because the scheduled data downloads were delivered automatically. The service also competed with cable and satellite pay-per-view offerings that generally provided broader catalogs and more established delivery infrastructure. Because the movies were transmitted through an analog broadcast channel, compression and picture quality could be inferior to DVD or Blu-ray. The dependence on full-power analog NTSC television was an additional strategic weakness as the United States prepared to complete the transition to digital broadcasting. After Movie Gallery filed for Chapter 11 bankruptcy protection in December 2007, MovieBeam notified customers that the service would end. Operations officially ceased on December 15, 2007. MovieBeam therefore became an early example of a technically inventive but short-lived pre-streaming video service, positioned between broadcast television, physical rental, and the broadband video-on-demand systems that later became dominant.

MovieBeam was created as a Disney-backed attempt to deliver transactional video on demand through broadcast television rather than through an internet connection or a conventional cable operator. The project was associated with Buena Vista Datacasting, LLC, and used a system based on Dotcast's dNTSC technology. Digital movie files were inserted into the vertical blanking interval of analog NTSC television transmissions, the same broad portion of the television signal historically used for services such as closed captioning. National Datacast distributed the service data to participating stations. The receiving device was a proprietary set-top box that accumulated movie files and allowed subscribers to initiate rentals. The system could deliver up to ten new films per week, as well as trailers, previews, and other extra material. It connected to MovieBeam's servers through a telephone line so that rental events could be recorded for billing. The box supported several advanced video and audio connections for its time, including HDMI, component video, optical digital audio, and coaxial digital audio. It also contained USB and Ethernet ports, although those connections were not enabled in the final firmware release. MovieBeam was spun off by Disney in January 2006. Financing reportedly totaled $48.5 million and involved Disney, Intel, Cisco, Intel Capital, Mayfield Fund, Norwest Venture Partners, and Vantage Point Venture Partners. The service entered a market already served by cable and satellite pay-per-view, while broadband video services were becoming increasingly important. MovieBeam's differentiation was its ability to reach homes through terrestrial television broadcasts, potentially avoiding the need for broadband access. The operating model had important constraints. Customers needed a reliable over-the-air signal to receive the embedded data. The system could download content automatically even when a subscriber had no interest in the available films, creating a mismatch between scheduled transmission and actual demand. The films were also subject to compression associated with the broadcast-delivery method and could offer lower quality than DVD or Blu-ray. Although cable systems might have carried compatible broadcast data, providers could filter out vertical-blanking-interval services to preserve bandwidth or avoid duplicating their own offerings. The service's reliance on full-power analog NTSC broadcasts became more problematic as the United States moved toward digital television. A planned analog shutdown was approaching, and no publicly established digital-specific successor for MovieBeam was available. On March 7, 2007, Movie Gallery acquired MovieBeam, Inc. as part of a strategy to move beyond its physical rental-store business. The transaction did not produce a durable operating platform. After Movie Gallery filed for Chapter 11 bankruptcy protection in December 2007, MovieBeam notified its customers that it would cease operations. The service officially shut down on December 15, 2007.

• 2007

  Movie Gallery acquired MovieBeam

  [1]MovieBeamen.wikipedia.org

  Movie Gallery, Inc. acquired MovieBeam, Inc. on March 7, 2007, attempting to diversify from its traditional physical movie-rental business.

• 2007

  Service discontinued

  [1]MovieBeamen.wikipedia.org

  MovieBeam ceased operations on December 15, 2007, after Movie Gallery entered Chapter 11 bankruptcy proceedings.

• 2006

  Disney spun off MovieBeam

  [1]MovieBeamen.wikipedia.org

  MovieBeam was separated from The Walt Disney Company's direct corporate structure in January 2006 after being developed as a Disney-backed broadcast video-on-demand initiative.

A broadcast-delivered alternative to cable pay-per-view, satellite video services, and physical movie rental, designed to provide on-demand access without broadband internet.

• Video-on-demand service

  MovieBeam video-on-demand service

  A transactional movie-rental service that transmitted digital film data through the vertical blanking interval of local analog NTSC television broadcasts. Subscribers selected rentals stored on a dedicated receiver, with rental access generally lasting 24 hours. The service delivered new films, older catalog titles, trailers, and previews without requiring a broadband internet connection.

• Consumer electronics

  MovieBeam set-top box

  The proprietary receiver stored broadcast-delivered movie files and enabled playback on a home television. It included HDMI, component-video, coaxial and optical digital-audio outputs, plus USB 2.0 and Ethernet ports that were not active in the final firmware. The box supported 720p high-definition playback through HDMI or DVI-D and used a telephone connection for billing communication.

• 2007

  Movie Gallery acquisitionM&A

  Background

  Movie Gallery was seeking to expand beyond physical video rental as digital and alternative forms of movie distribution developed.

  Action taken

  Movie Gallery acquired MovieBeam, Inc. on March 7, 2007.

  Aftermath

  MovieBeam remained in operation for only part of 2007. Movie Gallery later entered Chapter 11 bankruptcy, after which the service was shut down.

  Reported acquisition cost plus 2007 operating expenses. $10 million expected (2007)

  Source

• 2007

  Termination of serviceOther

  Background

  Movie Gallery filed for Chapter 11 bankruptcy protection in December 2007, undermining the operating support for MovieBeam.

  Action taken

  MovieBeam notified customers that service would end and officially ceased operations on December 15, 2007.

  Aftermath

  The MovieBeam service and its broadcast-based rental model were discontinued.

  Source

• 2006

  Corporate spin-off from DisneyStrategy

  Background

  MovieBeam had been developed as a Disney-backed service through Buena Vista Datacasting and was being positioned as a distinct broadcast-based video-on-demand business.

  Action taken

  Disney spun off MovieBeam in January 2006.

  Aftermath

  The business continued with outside investment and later became an acquisition target for Movie Gallery.

  Source

1. 1MovieBeamen.wikipedia.org