Maybe letting people download, transport and then play movies using a USB drive will be the ticket to busting Hollywood’s DVD sales slump. That’s the logic behind studio-backed initiatives from DivX, CinemaNow and Widevine, and now, Digiboo, an L.A.-based startup that just got a cash injection from Revelations Entertainment, the production company founded by actor Morgan Freeman. (Back in 2006, Revelations tried — and failed — to launch online movie service Clickstar, but perhaps different market conditions will help this new venture fare better).
Digiboo plans to launch over 100 kiosks in Hollywood Video stores next year; the first will roll out in January. People will be able to plug a USB device into the kiosk, download movies to rent or own, and then plug them in to any USB 2.0 or 3.0-compatible device (i.e. a computer, game console or set-top box) to watch them later.
The company says the downloads — complete with DRM protection — will take “less than 30 seconds.” Digiboo will test multiple pricing options, though none as cheap as Redbox’s $1 rentals, per Variety. The pricing, Freeman’s connections, and the fact that the company partnered with a retailer like Hollywood Video, is likely how it got the studios to agree to supply “over 1,000″ movies from the start.
L.A.-based Digiboo was founded last year by MGM vet Richard Cohen, Jeff Karbowiak, Blake Thomas and Eric Villette. The amount of Revelations’ stake wasn’t disclosed, though Samuel Edge, who headed up Revelations’ digital business, will now serve as Digiboo’s CTO. Edge told Variety that Intel (NSDQ: INTC) — which had partnered with Revelations on the botched Clickstar platform — approached the company again, this time with a USB-based distribution project in mind from the start. It is not clear whether Intel also took a stake in Digiboo. Updated: The company confirmed that Intel is only a “tech partner,” not an investor. Release.

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