Disney, News Corp. to Try Video-on-Demand

Walt Disney Co. and News Corp.’s 20th Century Fox--the only major studios not involved in an online film venture announced by five rivals--are expected to announce their own video-on-demand initiatives this week, sources familiar with the situation said.

Neither Fox nor Disney would comment, but sources close to Disney said it planned to launch its own Internet video-on-demand service through the Movies.com Web site within days.

Sony Corp.’s Sony Pictures Entertainment, AOL Time Warner Inc.’s Warner Bros., Vivendi Universal’s Universal Pictures, Viacom Inc.’s Paramount Pictures, and Metro-Goldwyn-Mayer Inc. were involved in the Internet video-on-demand joint venture announced Aug. 16.

Although it is not widespread, cable video-on-demand is growing in popularity. Time Warner Cable offers its own system in a few markets and Comcast Corp. has been running trials in some markets.