Summary:

Update: Sony-Comcast have formally announced the deal..read below…
Also in the Sony-MGM-Partners buyout deal, Comcast, the biggest U.S. ca…

Update: Sony-Comcast have formally announced the deal..read below…

Also in the Sony-MGM-Partners buyout deal, Comcast, the biggest U.S. cable operator, is considering plans to contribute about $300 million to the venture, according to Reuters.

Comcast will the partnership to make Sony’s Columbia/Tri-Star film library (and include MGM library) movies available through its VOD service, or on cable TV channels it separately plans to launch with Sony…

Earlier this year, Comcast made a failed bid for Disney…

Update: Release: While this agreement contemplates consummation of the acquisition of MGM, the parties will proceed with Sony content on a stand alone basis for VOD under any circumstances.

“This represents our first major studio deal for VOD content and will enhance the attractiveness of our VOD platform,” said Brian Roberts, CEo of Comcast, in the statement…

USA Today: This is the first major VOD deal between a cable operator and a Hollywood studio and could be an icebreaker. Hollywood has been protective of lucrative DVD sales, offering relatively few big films to VOD — and usually only after giving retailers and rental stores such as Blockbuster a 45-day head start.

LAT: (reg. req.) Owning MGM also could give Sony added clout as it tries to steer the entertainment industry toward the Blu-ray technology it is helping develop for a new generation of high-definition DVD players.

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