Mobile Entertainment

Posted: Mon., Jan. 28, 2008, 3:45pm PT

Sony strikes deal with SK Telecom

Duo to offer VOD movies to mobile phones

Sony Pictures Television Intl. has struck a deal with Korea's SK Telecom to deliver full-length, video-on-demand movies to mobile phones, believed to be the world's first such deal for Hollywood pics.

Sony's four-year deal, understood to cover upward of 50 movies and TV series a year, includes all three films in the "Spider-Man" franchise, "Kung Fu Hustle," "Surf's Up" and Emmy-nominated TV series "The Tudors."

On top of their network usage fees, which are waived in the case of unlimited usage packages, users will pay Won1,000 to 2,000 ($1.05-$2.10) per movie.

"South Korea is one of the most wired parts of the world and a pioneering market in terms of new media. This deal further strengthens our leading position in digital and mobile distribution in Asia," Ross Pollack, senior VP, distribution, Asia at SPTI, said.

SK Telecom, which operates the NATE and June mobile platforms and has 22 million cell phone subscribers, has similar deals with Korean suppliers and is looking for more.

"We will continue to expand our partnership with media companies to enrich mobile-based video content services," said Soo Hyeok Lee, VP of the music business office at SK Telecom.

The country launched mobile TV less than two years ago in two competing versions -- satellite delivered and terrestrial -- and already counts more than 7 million subscribers.

SPTI already has a deal that sees day-and-date releasing of DVD and VOD on Hanaro's Hana TV Internet network, an experiment made easier by the poverty of the country's physical disc market and the massive penetration of super-fast broadband.

Company has also licensed electronic sell-through rights for current and library movies to Hanaro, allowing Hana TV subscribers to download to own onto their set-top boxes, PCs and plug and play devices (Daily Variety, Oct. 4, 2007.)

Contact the Variety newsroom at news@variety.com

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