Oct. 3 (Bloomberg) -- M-Go, an online film sales and streaming venture, reached an accord to offer movies from co-owner DreamWorks Animation SKG Inc. and Relativity Media LLC, bringing to seven the number of studios using the service.
The service is scheduled to start in the fourth quarter, according to John Batter, chief executive officer of Burbank, California-based M-Go. The business is jointly owned by Technicolor SA, the majority investor, and DreamWorks Animation, the studio run by CEO Jeffrey Katzenberg.
M-Go is designed to be a simple, one-stop website for finding and watching movies and TV shows. The company seeks to bridge other services by providing access to other sites for films that aren’t in M-Go’s library. Movies and shows will be available on the site the same day that DVDs and Blu-ray discs go on sale and can be watched on a variety of devices.
“Our target is the mass market,” Batter said yesterday in an interview. “It is the majority of Americans who have not made the transition to digital.”
Hollywood is looking to online purchases, rentals and subscription streaming for growth as DVD and Blu-ray disc buying dwindles. U.S. consumer spending on streaming subscriptions rose fivefold to $1.1 billion in the first half of 2012, according to a studio-backed industry study.
Purchased films can be stored in UltraViolet, the cloud-based system backed by major Hollywood studios and electronics manufacturers, the company said.
Other studios that have agreed to provide content include News Corp.’s Twentieth Century Fox, Viacom Inc.’s Paramount Pictures, Sony Corp., Comcast Corp.’s NBC Universal and Time Warner Inc.’s Warner Bros.
DreamWorks Animation, based in Glendale, California, gained 2.4 percent to $19.60 yesterday in New York. The stock has gained 18 percent this year. Technicolor was little changed at 1.94 euros in Paris and has gained 70 percent this year.
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