From the Baltimore Sun
Major studios to put new, old movies online
People and Places



April 3, 2006

Hollywood studios will start selling digital versions of films such as Brokeback Mountain starring Heath Ledger and Jake Gyllenhaal and King Kong, starring Naomi Watts, on the Internet this week, the first time major movies have been available online to own.

The films can't be burned onto a disc for viewing on a DVD player. Still, the move is seen as a step toward full digital distribution of movies over the Net.

Six studios said they would announce today that sales will begin through the download Web site Movielink, owned by five of the seven major studios.

Warner Bros., Universal Pictures, Sony Pictures, Paramount Pictures, 20th Century Fox and MGM will offer some first-run and older titles. New films will be priced similar to DVDs - between $20 and $30 - while older titles will sell for $10 to $20.

In a separate announcement, Sony and Lionsgate said they will sell films through the CinemaNow site.

Only films from The Walt Disney Co. will not be available, although both services say talks are continuing.

Studios are being cautious about selling films online in part because DVD sales produce more profit than box office receipts.