RealNetworks Faces Tough Hurdles With Its Online Movie Offering

Following yesterday’s announcement about RealNetworks tying up with Starz to offer on-demand movie service, WSJ does a story on the hurdles on launching an operating such a service. Final pricing hasn’t been determined yet for the service, due out in the first half of next year, but executives say it may cost somewhere in the neighbourhood of $10 a month.

“But in one telling twist, Starz executives won’t say it will deliver movies over the Internet. Instead, they prefer to say that it will use ‘broadband networks’ such as cable or direct subscriber lines, even though many experts would include broadband connections as part of the Internet. Starz’s Mr. Sie says the company’s deals with movie studios restrict it from showing movies overseas and that the Internet is, by definition ‘open to all territories.'”

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