Indian Outfit Acquires MovieBeam

SEATTLE/LOS
ANGELES/MUMBAI, July 16: MovieBeam, the beleaguered on-demand,
set-top-box-delivered movie-rental service launched by Disney in 2005, has been
acquired by The Valuable Group, an Indian media and technology company.

MovieBeam was suspended
not longer after launch and then revived by Disney in 2006, following a
financial injection from Cisco Systems, Intel Corporation, Mayfield Fund,
Norwest Venture Partners and VantagePoint Venture Partners. The company was
sold off early last year to MovieGallery, which shuttered the service at the
end of 2007.

Valuable, a Mumbai-based
media and technology company, has completed a transaction to acquire
MovieBeam’s assets, including all trademarks, technology and alliances. The purchase
price was not disclosed. Valuable is planning to invest in the service and
upgrade its technological infrastructure, with a focus on tailoring the
platform to the hospitality industry. The company plans an initial investment
of $100 million over the next two years for MovieBeam’s relaunch in North
America, the U.K. and other overseas markets.

“This acquisition is a
strategic fit in our global expansion strategy for our media and entertainment
practice,” said Sanjay Gaikwad, the founder and managing director of The
Valuable Group. “Through MovieBeam, Valuable will further establish itself as a
leader in the media and entertainment space by allowing us to deliver content
to homes and the hospitality industry worldwide.”

Ameya Hete, Valuable’s
executive director, has been tapped as the CEO of MovieBeam. She noted: “This
service will completely redefine the on-demand entertainment market. We are
adding cutting-edge features to the MovieBeam service that will bring
additional and currently unrealized revenues back to the entertainment industry
and the deserving constituents.”

The Valuable Group also
runs UFO Moviez, a satellite-based digital cinema network in India servicing
more than 1,200 theaters.

—By Mansha Daswani