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AOL moves into movie downloads
It's the future...

By Caroline McCarthy

Published: Friday 25 August 2006

AOL is adding digital movie downloads from several studios to its video site and providing more on-demand TV shows.

The company said on Thursday it has cut deals with several movie studios - Sony Pictures Entertainment, Twentieth Century Fox Film, Universal Studios and Warner Bros Entertainment - to make full-length movie downloads and related content available on its AOL Video site.

Any visitor to the video portal, not just AOL members, can get a movie download, with titles ranging in price from $9.99 to $19.99. Other film-related content, such as trailers and outtakes, can often be streamed for free, AOL said.

The move is part of the Time Warner subsidiary's effort to transform itself from an ISP into a web-based media company. For the Hollywood studios, faced with digital piracy of their products, it is an acknowledgment of the need for online distribution.

Benjamin Feingold, president of Sony Pictures Home Entertainment, digital distribution and acquisitions, said in a statement: "Viewing online digital content is no longer an esoteric pastime. Online programming services like AOL's video portal have the potential to become a major distribution stream for consumer entertainment and a viable revenue source for Hollywood."

While on-demand movie services such as CinemaNow and Movielink have been around for a while, the buzz over online film downloads has surged recently, with rumours of Amazon.com and Apple's iTunes store launching services of their own.

In addition to movies, AOL has augmented its on-demand television content with downloadable programming from Fox and Sony, including full episodes of 24, Buffy the Vampire Slayer and Charlie's Angels.

Several TV networks have also made preview shows from their soon-to-debut autumn line-up available on AOL Video, a trend that has taken off this summer at other online media hubs such as iTunes and Netflix.

Right now, AOL Video offers a limited line-up of downloadable TV shows rather than a wide range of programming. It groups its on-demand programmes into "channels" - primarily offshoots of cable and satellite networks such as FX and MTV2 - and offers a shifting selection, typically for $1.99 apiece. There are also AOL News video clips and the still-in-beta online extreme-sports network Lat34.com

The current movie downloads are restricted to a dozen Sony Pictures releases, such as Black Hawk Down and Spider-Man 2. Additionally, the site offers free access to movie trailers, music videos and user-generated clips in the manner of Google Video or YouTube.

AOL Video content can be burned to DVD and is compatible with many devices, the company said.

Caroline McCarthy writes for CNET News.com