Burbank Video-on-Demand Outfit Acquired

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Movie Gallery Inc., the second largest U.S. video rental chain, has acquired Burbank-based MovieBeam Inc. as it expands its video-on-demand business, the company said Wednesday.


Movie Gallery, based in Dothan, Ala., operates the Hollywood Video and Game Crazy chains. It said the acquisition is a move to keep up with video-on-demand competitors, including Amazon.com Inc., Netflix Inc. and Apple Inc. Blockbuster Inc., the nation’s largest video-rental chain, has said it may take on a partner later this year for its own system it plans to design.


Burbank-based MovieBeam transmits videos to television set-top boxes in 31 U.S. cities, charging $100 for the set-top boxes and $1.99 to $4.99 per movie rental. Its largest investor is the Walt Disney Co.

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