Movie Gallery closing MovieBeam
By Cindy Spielvogel -- Video Business, 12/7/2007
DEC. 7 | Movie Gallery confirmed it will close its MovieBeam set-top box download service on Dec. 15.
“The decision to discontinue was made in light of Movie Gallery’s ongoing efforts to enhance its financial performance,” said a spokeswoman for Movie Gallery.
The video chain acquired MovieBeam earlier this year from the Walt Disney Co. and others investors.
Terms weren’t disclosed, but at the time, Movie Gallery said the initial acquisition cost plus any ongoing development expenses would amount to less than $10 million this year.
The previous investors had spent more than $100 million on the service.
Movie Gallery filed for bankruptcy protection in October, proclaiming $1.4 billion in debt but only $892 million in assets. In court papers filed Nov. 30, the company said it owes more than $901 million to secured creditors and at least $338.8 million to unsecured creditors, along with additional unspecified debt.
