- 15 February 2006 10:56
The Walt Disney Company, Cisco Systems And Intel Corporation Invest In Moviebeam, Inc.
New Digital Entertainment Venture Launches with US$48.5 Million in Series A Financing
SYDNEY, Australia, Feb. 15, 2006 – The Walt Disney Company (NYSE: DIS), Cisco Systems and Intel Corporation, through its leading investment arm Intel Capital, today announced they have invested in MovieBeam, Inc., a newly formed digital entertainment venture. The series A financing round, worth a total of US$48.5 million, includes additional investment from tier-one venture capital firms the Mayfield Fund, Norwest Venture Partners and VantagePoint Venture Partners.
MovieBeam is poised to dramatically improve consumers’ movie-rental experience with its movies-on-demand service that debuts today across most major metro areas in the U.S. (see today’s related announcement). MovieBeam’s unique mix of breakthrough content rights, technology, relationships and assets combined with the expected continued growth in the popularity of consumer electronics devices and alternative content distribution channels is compelling to the new investors.
In the US$10 billion U.S. movie-rental industry, 30 million households rent four or more movies per month – 80 per cent of them new releases. MovieBeam serves this market and provides a compelling alternative to other movie-rental options. The MovieBeam movies-on-demand service provides instant access to an ever-changing line-up of new releases and popular favourites from virtually every major Hollywood studio. There are always 100 movies available instantly, with up to 10 new titles automatically delivered digitally each week – including select movies in high definition (HD) – via MovieBeam’s exclusive, low-cost over-the-air datacasting technology.
“Digital technology is changing the face of entertainment, which is helping to transform peoples’ lifestyles and create exciting new business opportunities,” said Paul Otellini, president and CEO of Intel Corporation. “As the lines between computing and consumer electronics devices continue to blur, it is imperative that high-quality premium content be readily available and accessible. Such new services as MovieBeam are helping to deliver on this vision by providing consumers with greater choice and control over how they enjoy digital entertainment."
“There is a transition happening in the home entertainment market as consumers are moving toward platforms that provide on-demand access to content,” said John Chambers, president and CEO of Cisco Systems, Inc. “The convergence of traditional consumer electronics products with home networking technologies allows for the creation and deployment of new entertainment services that will give consumers greater control and a richer user experience. As MovieBeam continues to expand its offerings there will be a range of opportunities for collaboration to jointly deliver on this vision."
MovieBeam was incubated within The Walt Disney Company for nearly four years. A first generation of this plug-and-play service was deployed and tested in three cities for more than a year, beginning in September 2003. The results of that test proved that the technology works, studios and retailers will help champion the platform, and consumers will pay for and adopt the convenience and quality inherent in this kind of service. For the past year, the organisation has been focused on incorporating key learnings from that test, securing additional ground-breaking content rights, building new features and flexibility into the service and the technology platform, and rolling out the low-cost datacasting network infrastructure nationally.
“Consumers have come to expect entertainment content when, where and how they want it, and with its increased reach, enhanced technology and support from investors like Cisco and Intel, MovieBeam will create that convenience,” said Bob Iger, president and CEO of The Walt Disney Company.
The newly appointed MovieBeam, Inc. board of directors, which will help guide the strategic direction of the business, includes:
Kevin Fong, managing director, Mayfield Fund Matthew Howard, partner, Norwest Venture Partners Salil Mehta, executive vice president, ESPN Enterprises (part of The Walt Disney Company) Tres Izzard, president and CEO, MovieBeam, Inc. “The calibre of the companies that have invested in MovieBeam is a testament to what we’ve done right so far and the immense opportunity before us now,” said Tres Izzard, president and CEO of MovieBeam, Inc. “MovieBeam is establishing a foothold as an up-and-coming leader in digital entertainment. We’re committed to delivering the highest quality and most convenient movie-rental experience to our customers, which will enable us to grow this business and continue to deliver innovative offerings that change the way people enjoy entertainment at home.”
More information, as well as the opportunity to order the MovieBeam System, is available at www.moviebeam.com.
About the Investors
The Walt Disney Company (NYSE: DIS), together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products. More information is available at www.disney.com.
Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Information on Cisco can be found at www.cisco.com.
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. As a leading global venture capital investor, Intel Capital, through its Digital Home Fund, actively supports Intel’s initiatives enabling people to enjoy digital content on multiple devices in the home and beyond. More information on Intel is available at www.intel.com/pressroom. For more information on Intel Capital, visit www.intel.com/capital.
Mayfield Fund provides “venture capital with impact” and shows leadership in early-stage venture investing by partnering with exceptional individuals to create industry-leading companies. More information is available at www.mayfield.com.
Norwest Venture Partners (NVP) has actively partnered with entrepreneurs to build significant businesses for more than 45 years. More information is available at www.nvp.com.
VantagePoint Venture Partners is a leading, multi-stage venture capital firm focused exclusively on technology and healthcare investment opportunities. More information is available at www.vpvp.com.
For more information, please contact:
Dan Anderson Intel Australia Pty Ltd +61 2 9937 5886 +61 418 686 775 firstname.lastname@example.org
Veronica Colvin Spectrum Communications +61 2 9954 3299 email@example.com