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ANDREA FIGLER
Video-on-demand provider Intertainer wants to add movie network Starz Encore Group to its entertainment selection, a deal that could force Intertainer to adjust its business plan somewhat, a Starz Encore official says.
"Unofficially, we're talking with Intertainer about being a distribution path," says Greg DePrez, VP-subscription video-on-demand for Starz Encore.
Because Starz Encore can't use its movies on a pay-per-view basis, any deal struck with Intertainer will have to be on subscription only, DePrez says.
Intertainer allows its customers to choose a movie, or any form of video entertainment, and pay to have it streamed to their television set on a pay-per-view basis only. The company would have to alter its business model slightly to make room for Starz Encore, an Intertainer spokeswoman confirmed.
Intertainer has a host of partners that use the pay-per-view model, including Disney, Dreamworks SKG, Sony and ESPN.
The company also cut a deal last week with A&E Television Networks on a pay-per-view model primarily. David Zagin, A&E's VP-affiliate sales, says his company may do some ground tests to see what a subscription video-on-demand model looks like.
A&E will provide Intertainer with original programming documentaries from its Biography series, as well as shows from The History Channel beginning as soon as next month.
Documentary-style programming works well because Intertainer can provide more interactive content, an inside peek, on the documentary for its customers, the Intertainer spokeswoman explains.
Consumers can access these documentaries via Comcast, the only cable operator working with Intertainer right now.
While Intertainer seeks other deals with cable operators, it also offers its shows through a high-speed Internet connection to a personal computer. The service is offered to clients who use an affiliated Internet service provider network. By keeping its shows within the ISP network's borders, Intertainer believes it keeps the content it offers secure.
These secure Internet capabilities were welcomed by A&E but were not the driving force behind the deal, A&E's Zagin says.
"Really, the cable platform is the strength of this," he says.
While DePrez of Starz Encore also likes Intertainer's Internet service plan, there are many other choices out there, he says.
DePrez also explains he would work with the cable operators on their own VOD platform if they so choose. He cautioned most MSOs, however, want to test the waters with a pay-per-view style service first before jumping into the subscription VOD waters.
"What we want to do with the video-on-demand capability is take some of the movies that are already playing on our channels and put them on a video-on-demand system that a cable system may install and provide to our customers for an additional fee. We see it as an enhancement to the pay TV service they already have," he says. "We don't care if it's a headend, Intertainer or a hard drive."
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