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Starz sues Disney over iTunes downloads

updated 02:55 pm EDT, Thu March 22, 2007

Starz Sues Disney

Cable TV network Starz Entertainment said on Thursday that it was suing the Walt Disney Company, accusing the latter of violating an exclusivity agreement by offering its movies through online stores such as Apple's iTunes Store and Wal-Mart's Video Downloads service. Filed in Los Angeles, the suit alleges that Disney broke a 2005 deal which gave Starz sole rights to Disney movies for an unpublicized amount of time on both its TV channel and its Vongo online store.

The suit could be especially damaging for Apple, whose close connection to Disney helped launch the initial catalog of iTunes movie downloads in September of last year with a swath of exclusives such as the Pirate of the Caribbean series. Apple CEO Steve Jobs currently sits on Disney's board of directors and holds the largest individual stake in the movie studio's shares.

Nevertheless, Starz has referred to its own loyalty as a motivating factor behind the suit. The entertainment channel, which is owned by Liberty Media Holding Corporation, has invested over $1 billion in securing the rights to Disney films since 1993 and believes that distribution to Apple and Wal-Mart was a particularly severe breach of trust.

No details are available concerning the financial compensation sought by Starz in the lawsuit.



By Electronista Staff
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Comments

  1. jarod

    Fresh-Faced Recruit

    Joined: Apr 2005

    0

    Ya ya

    Been there; done that. DISMISSED!

  1. UberFu

    Fresh-Faced Recruit

    Joined: Oct 2002

    0

    it's amazing...

    how the "little kids bickering about nothing" mentality never really leaves us as we grow up_

    Corporations having temper-tantrums about who's ball it is and who's going to go home with it_

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    0

    Agreed

    And haven't we got enough ads on this site without adding AUDIO? A year or so ago, the pages weren't nearly so cluttered, not to mention the mouse-over-ads. I know you're trying to make a dime here, but the main reason for using the site is to avoid the clutter of ads in others. Now you've got a looped audio ad. Nothing is more annoying.

    Please draw the line there at least.

  1. t6hawk

    Mac Enthusiast

    Joined: Jan 2001

    0

    Starz who?

    I've never heard of Starz or their oddly named store.

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