Movielink

Movielink was a web-based video-on-demand and electronic sell-through service created by a group of major Hollywood studios and launched in the United States on November 12, 2002. It offered consumers the ability to rent or purchase downloadable movies, television programs, and other video content. The service is notable for being described as the first company in the world to offer legally downloadable films from major movie studios. The venture was established in August 2001 by Paramount Pictures, Paramount Network Television, Sony Pictures Entertainment, Metro-Goldwyn-Mayer, Universal Studios, and Warner Bros. Entertainment. Its studio-backed structure gave it access to substantial film libraries, while also reflecting the entertainment industry's early attempt to develop a controlled digital-distribution channel. Additional suppliers later included Buena Vista Pictures, Miramax, Twentieth Century Fox, Twentieth Television, Koch Entertainment, and other rights holders. Content was generally supplied on a non-exclusive basis. Movielink's commercial model combined digital rental and electronic sell-through. Listed rental or viewing prices generally ranged from $1.99 to $4.99. The service used digital-rights-management systems supplied by Microsoft and RealNetworks, which constrained playback to compatible Intel-based computers running versions of Microsoft Windows, including Windows 2000, XP, and Vista, together with supported versions of Windows Media Player. In most cases, a downloaded title could be watched on the computer used for the transaction or on a television connected to that computer. Support for devices such as Microsoft's Xbox 360 and arrangements with set-top-box providers, including AT&T's Homezone product, offered alternative routes to television viewing. The company also tested new digital-distribution approaches. These included the possibility of allowing a customer to purchase, download, and burn a selected film to a DVD. In April 2006, Movielink carried Brokeback Mountain in what was described as the first simultaneous DVD and legal online release of a film, an important milestone in the transition from physical to digital home entertainment. Movielink operated during a period of rapid change in online video. The United States Department of Justice Antitrust Division investigated its distribution model in 2004 and found no monopoly issue. By 2006, however, the owners were reportedly considering a sale as the studios pursued relationships with other digital distributors, including Amazon.com, Apple, BitTorrent Inc., Jaman, and Microsoft Xbox. The growth of competing online rental and streaming models increased pressure on Movielink's downloadable, computer-centered approach. Blockbuster purchased Movielink on August 8, 2007, for a reported $6.6 million. The transaction was intended to strengthen Blockbuster's position in the emerging online movie-rental market, and Blockbuster announced that portions of Movielink would be migrated to blockbuster.com. The Movielink website was shut down on December 16, 2008, and redirected to the Blockbuster home page. Customers were given advance notice and a deadline to download previously rented or purchased titles. Subsequent reporting stated that technology tested on blockbuster.com did not reach full production and that Movielink's technology was ultimately discarded, although Blockbuster retained catalog-related arrangements. Movielink therefore survives primarily as an early digital-distribution precedent rather than as an operating consumer brand.

Movielink emerged from the major Hollywood studios' early effort to establish a legitimate online alternative to physical video distribution and unauthorized file sharing. The joint venture was created in August 2001 by Paramount Pictures, Paramount Network Television, Sony Pictures Entertainment, Metro-Goldwyn-Mayer, Universal Studios, and Warner Bros. Entertainment. Rather than functioning as a general-purpose video platform, it was built around licensed studio programming and a distribution model controlled by copyright owners. The service launched in the United States on November 12, 2002. It offered movie and television downloads for rental or purchase, with reported prices generally ranging from $1.99 to $4.99. Movielink's launch was historically significant because it was described as the first service to provide legally downloadable films from major studios. Its catalog drew initially on the libraries of its founding owners and later expanded through non-exclusive arrangements with companies including Buena Vista Pictures, Miramax, Twentieth Century Fox, Twentieth Television, and Koch Entertainment. The technical experience reflected the limitations of early digital video. Microsoft and RealNetworks supplied digital-rights-management technology, and compatibility was largely restricted to Intel-based personal computers running Microsoft Windows 2000, XP, or Vista with supported Windows Media Player software. A purchased or rented movie was generally tied to the computer involved in the transaction or to a television connected to that computer. Xbox 360 compatibility and agreements with selected set-top-box providers, including AT&T's Homezone product, attempted to make the service more suitable for living-room viewing. Movielink also explored a feature that would have let customers download a film and burn it to a DVD. Regulatory scrutiny was limited but notable. In 2004, the Antitrust Division of the United States Department of Justice examined Movielink's distribution model and concluded that it did not present a monopoly problem. The service continued to develop its release model, and in April 2006 it offered Brokeback Mountain online at the same time that the film was released on DVD. This was reported as the first simultaneous DVD and legal online release of a movie. Movielink's position became more difficult as the digital-video market broadened. In 2006, its owners were reported to be considering a sale. At the same time, studios were pursuing relationships with other potential distributors, including Amazon.com, Apple, BitTorrent Inc., Jaman, and Microsoft Xbox. Netflix introduced streaming in January 2007, adding to the competitive pressure on downloadable services. Movielink's dependence on Windows-based playback and rights-management restrictions also made it less flexible than later services built around device portability and continuous streaming. On August 8, 2007, Blockbuster acquired Movielink for a reported $6.6 million. Blockbuster presented the purchase as a way to move rapidly into online movie delivery, and the companies announced that portions of the service would be migrated to blockbuster.com. The Movielink website was ultimately closed on December 16, 2008, with visitors redirected to Blockbuster's home page. Customers received advance notice and were required to download titles obtained before the closure by the specified December 15 deadline. In January 2009, reporting indicated that Blockbuster had beta-tested Movielink technology on blockbuster.com but had not taken the test into production. The technology was reportedly discarded, although Blockbuster kept Movielink's catalog arrangements. Movielink consequently became a defunct brand. Its lasting importance lies in its role as an early, legally licensed, major-studio-backed experiment in downloadable home entertainment, preceding the widespread adoption of streaming video.

• 2009

  Technology reportedly discarded

  [1]Movielinken.wikipedia.org

  Reporting indicated that Blockbuster's test of Movielink technology did not reach production and that the technology was later discarded.

• 2008

  Consumer website shut down

  [1]Movielinken.wikipedia.org

  The Movielink website closed and redirected users to Blockbuster's website.

• 2007

  Acquired by Blockbuster

  [1]Movielinken.wikipedia.org

  Blockbuster purchased Movielink for a reported $6.6 million.

• 2006

  Brokeback Mountain receives simultaneous DVD and online release

  [1]Movielinken.wikipedia.org

  Movielink offered Brokeback Mountain online at the same time as its DVD release, an early cross-format distribution milestone.

• 2004

  Antitrust investigation concludes

  [1]Movielinken.wikipedia.org

  The U.S. Department of Justice Antitrust Division found no monopoly issue with Movielink's distribution model.

• 2002

  Service launches

  [1]Movielinken.wikipedia.org

  Movielink launched in the United States with downloadable movie and television rentals and purchases.

• 2001

  Joint venture created

  [1]Movielinken.wikipedia.org

  Paramount, Sony Pictures, MGM, Universal, Warner Bros., and related television operations created Movielink as a studio-backed digital-distribution venture.

An early, studio-backed legal digital video service positioned between physical home-video rental and emerging online distribution. Movielink emphasized licensed Hollywood content, controlled digital rights management, and downloadable rather than primarily streaming access.

• Digital video rental · 2002

  Movielink movie rentals

  A downloadable rental service for licensed feature films. Customers paid to obtain a time-limited viewing experience, generally using a Windows-based computer and Movielink's digital-rights-management system. Reported prices ranged from $1.99 to $4.99.

• Digital video purchase · 2002

  Movielink electronic sell-through

  A downloadable purchase option through which customers could acquire selected movies for later viewing. Playback was constrained by supported operating systems, media-player software, and digital-rights-management rules rather than offering the broad device portability associated with later streaming platforms.

• Connected-home video

  Television and set-top-box delivery

  Movielink extended its computer-centered service toward television viewing through Xbox 360 support and arrangements with selected set-top-box providers, including AT&T's Homezone product. These integrations were intended to let customers watch downloaded titles on a conventional television.

• Digital-to-physical media

  Download-and-burn DVD concept

  Movielink experimented with a model that would allow a customer to purchase and download a selected film and burn it to a DVD. The available reference material describes this as an experiment or feature under development rather than a fully established product line.

• 2008

  Closure and migration to BlockbusterStrategy

  Background

  Blockbuster sought to consolidate its digital-video operations after acquiring Movielink.

  Action taken

  The Movielink website was shut down and redirected to the Blockbuster home page, with customers given a deadline to download previously obtained titles.

  Aftermath

  Movielink ceased operating as a consumer-facing service. Subsequent reporting indicated that its technology was not carried into full production.

  Source

• 2007

  Blockbuster acquisitionM&A

  Background

  Movielink's studio owners were operating in a rapidly expanding online-video market in which Amazon.com, Apple, BitTorrent, Jaman, Microsoft Xbox, and other potential distributors were competing for digital movie relationships.

  Action taken

  Blockbuster acquired Movielink for a reported $6.6 million and announced plans to migrate parts of the service to blockbuster.com.

  Aftermath

  The Movielink website closed in December 2008. Later reporting said that technology tested on blockbuster.com did not reach production and was ultimately discarded, although catalog arrangements were retained.

  Reported acquisition price. $6.6 million (August 8, 2007)

  Source

1. 1Movielinken.wikipedia.org