Video - Wednesday, March 7, 2007
Movie Gallery Buys Ailing, VC-Funded MovieBeam
Movie Gallery [Nasdaq: MOVI] plans to acquire Burbank-based MovieBeam. No financial terms were disclosed. MovieBeam raised $52.5M in Series A funding in 2005 from Mayfield, Norwest Venture Partners, Intel Capital, Cisco and ABC.
Founded in January 2006, The MovieBeam service is currently available in 31 metropolitan areas in the US. It competes with the likes of Netflix and last week there were reports that BlockBusuter would buy MovieBeam.
MovieBeam Requires Yet Another Set-top Box
As we posted last Spring, its movies on demand service was panned by critics. MovieBeam delivers video rentals via TV airwaves in compressed, encoded form, using capacity rented from public television stations in 29 US cities (at launch). They're picked up and stored in yet another $250 set-top box and rented at prices ranging from $1.99 to $4.99. The offer also suffers from very limited inventory compared to Netflix.
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