EU Approves Cable Venture of Sony, Disney

From Reuters

European Union regulators have approved a movies-on-demand joint venture of Sony Corp.'s Columbia Pictures, Walt Disney Co. and ON Demand Group of Britain that could help British cable companies fight off the country’s dominant pay-TV firm, BSkyB.

The MovieCo joint venture will offer films to customers of England’s and Ireland’s two biggest cable companies, Telewest and NTL. It could also improve Hollywood’s leverage with BSkyB as the satellite TV company renegotiates with individual studios over the rights to films for its movie channels.