Blockbuster Eyes Stake in New Pay-TV Venture

NEW YORK, April 30: The
video rental giant Blockbuster is said to be in talks about buying a stake in
the new premium TV channel and VOD service from Paramount Pictures, MGM and
Lionsgate.

The new service, set to
feature classic and contemporary feature films from the joint-venture partners,
was unveiled last week. The as-yet-unnamed service will be positioned as a
competitor to HBO, Starz and Showtime and is expected to launch in fall 2009.
According to reports, the new channel was conceived by partners after
negotiations to renew licensing agreements with Showtime broke down over
pricing.

According to the Wall
Street Journal, the deal being
discussed would give Blockbuster digital rights to the new service’s content,
in exchange for its investment in the company. The video store is being touted
as a logical partner for the service, given that it used to be owned by Viacom
and has been on an aggressive path to expand its business. This month it made
an offer to acquire the electronics retailer Circuit City and last year it
acquired Movielink, the online movie service established by MGM, Paramount
Pictures, Sony Pictures Entertainment, Universal Pictures and Warner Bros.
Studios.

—By Mansha Daswani