Viacom, MGM and Lionsgate to launch TV channel April 20, 2008 5:35 PM ET advertisement
NEW YORK (Reuters) - Viacom Inc's Paramount movie studios , Lionsgate and Metro-Goldwyn-Mayer plan to launch a premium television channel to carry their new film and television releases and archives, dealing a blow to CBS Corp's Showtime Networks Inc.
The channel, which will feature upcoming movies like "Iron Man" and "GI Joe" and classic hits such as MGM's "James Bond" franchise and Lionsgate's "Dirty Dancing," is expected to launch in autumn 2009, the companies said in a statement on Sunday.
"This venture has the potential to be a game changer for the industry," Viacom Chief Executive Philippe Dauman said in the statement. "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."
Lionsgate and MGM are not expected to renew their current contracts with Showtime when they expire at the end of this year. Paramount's contract with Showtime ended in 2007 and has not been renewed, the company said.
Viacom was split from CBS in 2006 to appeal to different classes of shareholders. Both are controlled by media mogul Sumner Redstone. CBS was not immediately reachable for comment.
Financial details of the joint venture were not disclosed, but Viacom said its MTV Networks division will provide promotional as well as other services.
Films and shows from the respective studios will be made available to the new channel and services on an exclusive basis for a period, with some exceptions.
Paramount's contract with director Steven Spielberg for "Indiana Jones and the Kingdom of the Crystal Skull" requires it to be made available to the highest bidder for television, for instance.
(Reporting by Kenneth Li, editing by Maureen Bavdek)
Copyright 2008 Reuters
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