Venture closes windows

CinemaNow.com, Digital Envoy to restrict access to films in designated territories

By TIM SWANSON

Addressing the territorial rights management issues inherent in delivering video-on-demand via the Internet, Lions Gate Entertainment-backed CinemaNow.com has partnered with rights manager Digital Envoy to restrict access to films in designated territories. The partners aim to prevent the World Wide Web from cannibalizing a studio's varying windows of distribution.

"Coming from the traditional film business, we are well-acquainted with the specific needs of Hollywood in terms of selling films on a territory-by-territory basis," said Curt Marvis, CinemaNow's CEO. "This is the next natural step in the evolution of our Internet-based video-on-demand network."

CinemaNow also announced it will offer films online that traditionally would appear in cable's pay-per-view window, such as Wim Wenders "Million Dollar Hotel," for a $9.95 monthly subscription fee; enrollment allows users unlimited access to films for 30 days.