Vongo Deal Offered To AT&T DSL Subs

By Greg Tarr -- TWICE, 4/26/2006

Engelwood, Colo. — Starz Entertainment Group (SEG) said it has reached a distribution deal with AT&T alerting the telecommunications company’s 7 million high-speed Internet customers to their ability to access the Vongo movie download service on a 14-day free trial basis.

At the end of the trial, subscribers may continue to receive access to movies and other downloadable video content at a $9.99 monthly subscription rate. Vongo provides access to more than 1,500 movie and video selections as well as a live, streaming Starz! TV channel.

Financial terms of the distribution agreement were not disclosed.

According to an SEG statement announcing the plan, the agreement represents the next step in Starz!’s strategy of building out a complete ecosystem of partners who will carry the Vongo service to consumers.

Since Vongo was first announced at the International CES last January, Starz! said it has signed a major marketing deal with HP and announced relationships with Microsoft and Sony. Other partnerships were said to be in the works.

Vongo members may download movies and video selections onto three eligible devices of their choice for each account, allowing for multiple-viewing options and family enjoyment. Additionally, select pay-per-view titles are available for $3.99 a movie.

Launched as a beta in January 2006, Vongo software is currently available as a free download for broadband subscribers in the United States at www.vongo.com.

“We are delighted to work with AT&T as the first broadband distribution partner for Vongo,” said Bob Greene, SEG advanced services senior VP. “This relationship is a major step toward realizing our goal of building a complete ecosystem for digital-movie enjoyment so that consumers can access their favorite content whenever and wherever they want.”

AT&T currently maintains more than 7.4 million lines of high-speed Internet service, representing the nation’s largest DSL provider.