Viacom, MGM Studios, and Lionsgate announced this afternoon that they have decided to come together in a joint venture that will launch payTV and video on demand (VOD) services in the fall of 2009. This new JV will combine premium content produced by five major studios: Paramount, Paramount Vantage, MGM, United Artists, and Lionsgate.
The venture was formed to focus on online distribution in addition to premium TV and VOD oriented towards the consumer. This definitely changes things in the world of premium television content as the current kings of premium television content, HBO, Showtime, and Starz, are knocked out of their thrones. CBS's premium channel Showtime is especially hurting from this new deal. It is safe to assume that Showtime's current output deals with Lionsgate, MGM, and Paramount, which are set to expire soon, will not be renewed.
With Viacom as the lead investor and providing operational support (including marketing and affiliate services) though its MTV Networks division, the new JV is looking to not only provide premium films and original television, but it is also looking to change the whole game entirely. Philippe Dauman, CEO of Viacom states:
This venture has the potential to be a game changer for the industry. We are building an innovative service that will use traditional and new digital distribution technologies to bring great film and television entertainment directly to the consumer. By combining the output of Paramount with MGM and Lionsgate, two film and television powerhouses, we are creating a premium film and television programming brand with unique flexibility to bring consumers the very best blockbuster movies and innovative TV series.
While the specifics of the venture's future plans are being kept under wraps for now, it is clear that the entertainment and media world will be watching closely for new developments as the fall of 2009 draws closer.
Sources: PR Newswire, Paidcontent.org story, Paidcontent.org interview
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