Movie production studio Lionsgate says it has so far invested USD8.6m in the new video-on-demand (VoD) channel it is launching next year with Viacom's Paramount Pictures and Metro-Goldwyn-Mayer (MGM).
Lionsgate's investment represents 28.57% of the venture, known as Studio 3 Partners. The studio says it also has a mandatory commitment to invest USD31.4m, increasing to USD42.9m, if certain performance targets are achieved.
MGM owns the same amount of the venture - 28.57%- and Viacom owns an extra 10%, meaning that the total money invested so far by the three studios is about USD34m, estimates paidContent. Assuming that the amount invested is proportional to the stake owned, total investment could be as much as USD150m, says the blog.
The partners announced plans for VoD channel in April, promising a premium TV channel that broadcasts archived content as well as new movies and TV shows. The studios plan to launch the channel on the internet and TV in 2009 to rival services such as Time Warner's HBO premium TV network.
Paramount, Viacom and Lionsgate are now looking for ISPs and satellite operators to broadcast the channel after Comcast pulled out of the venture in September. According to Business Week, Comcast is anxious about the health of on-demand viewing figures, which are declining in the US.
StrategyEye's related companies: HBO, Paramount Pictures, Comcast, Time Warner, Viacom, Lions Gate Entertainment, Metro-Goldwyn-Mayer
