(Length: 3 pages)

January 5, 2006

Microsoft's Billion-Dollar Bet Pays Off In Starz

Starz Uses Microsoft Technology To Bring 1,000 Movies Online

by Ted Schadler

with Josh Bernoff


Executive Summary (This is a document excerpt)

Starz Entertainment Group has announced Vongo, a new online movie downloading and streaming service. Starz uses Microsoft's digital media software to bring 1,000 movies online. Why did Starz choose Microsoft over Apple? Two reasons: 1) Apple won't license its technology, and 2) Microsoft has invested $1 billion to make it easy for Starz to bring all of its movies online for a small monthly fee. Microsoft will attract other media partners looking for new business models in 2006 and thus begin its inexorable march to digital media technology dominance.

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Analyst: Ted Schadler
Industry: Consumer Technology, Digital Content, Media & Entertainment, Movies
Geography: Asia Pacific, Europe, North America

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