MGM Cuts Video On Demand Deal with France Telecom
By George Winslow -- Multichannel News, 1/2/2008 8:41:00 AM
France Telecom’s Orange has licensed a package of new features and classic movies from MGM. The deal that will make MGM films available on demand on Orange’s 24/24 Video Service, which delivers programming via a digital TV or high speed internet connections to France, Spain and Poland.
The films will also be available in the U.K. when Orange launches its IPTV service in early 2008.
Under the terms of the multiyear deal, Orange will have rights to such new theatrical films as Casino Royale, as well as library product. The on-demand films cost as little as $1.47 for a 24 hour rental. The 24/24 Video product allows viewers to fast-forward, pause or rewind the films.
At the end of the third quarter 2007, Orange had about 106.7 million mobile customers and about 11.4 million ADSL subscribers.
Gary Marenzi, co-president of worldwide television at MGM, said the studio now has “dozens” of VOD deals internationally and that the demand for VOD rights has significantly increased in recent months. “We now have on demand deals in pretty much all the major European territories,” he said in an interview.
While revenue remains small, Marenzi said “the numbers we’re seeing are more aggressive than they’ve been,” and that the VOD deals offer a new way to exploit some of their library product.
“If we can great some interest [in on demand] among consumers that will help us in the after-markets of pay TV and free TV,” he said.
Marenzi would not comment the particular details of the Orange or their other VOD deals but he stressed that the studio was not willing to do on demand deals, which typically involve a revenue split, unless operators are also willing to also pay guarantees.
“We don’t want to give our product our on consignment,” Marenzi said. “We want to deal with people who are serious and willing to put some skin in the game when they go out and market our films.”
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