New Study Reveals Spokane Movie Lovers Late to Return Videos, Paying Nearly $100 Annually in...

Entertainment Editors/Business Editors

SPOKANE, Wash.--(BUSINESS WIRE)--Jan. 8, 2004

Spokane residents say the most aggravating thing about renting videos from the video store is having to pay late fees, according to a survey conducted by COMsciences Worldwide for MovieBeam(TM) Entertainment,

which provides an on-demand movie rental service that delivers entertainment directly to homes. Spokane residents report paying an average of $17.30 monthly, or more than $200 annually, in movie rental charges; however, they also report paying $8.50 monthly, or more than $100 annually, in movie rental late fees, accounting for nearly 33 percent of their total rental dollar. As a nation, Americans pay more than $1 billion a year in late fees, accounting for 12 percent of total consumer rental spending according to "Video Store Magazine."

Furthermore, the survey revealed that an overwhelming number of Spokane residents -- 77 percent -- say they would like to rent movies without having to deal with the inconvenience of going to the video store to rent and return DVDs and videos. With area residents renting on average more than four movies monthly -- mostly during the weekends -- an on-demand service like the MovieBeam(SM) service delivers a convenient, affordable alternative for movie watchers.

"Since the MovieBeam(SM) service launched in September, consumers have embraced the service's ease of use and convenience," said Salil Mehta, executive vice president, Corporate Development, The Walt Disney Company. "Users have told us that the ability to choose a movie from a list of 100 new releases and popular favorites without having to leave home has transformed their home movie viewing experience, and the findings from this survey underscore the need for a service like MovieBeam."

While the survey found that paying late fees is the most irritating aspect of renting a movie, it also found that:

-- Sixty percent of respondents say that worrying about returning

a video or DVD to the store to avoid paying a late fee can

take the fun out the movie watching experience.

-- Fifty-four percent of respondents feel they have to settle on

movies because their primary choice is out of stock.

"The video rental industry is evolving and on-demand technologies have the potential to offer consumer-friendly experiences. In the on-demand universe, video renters can find services that alleviate many of the hassles tied to traditional video renting," said Greg Ireland, senior analyst, Consumer Markets: Video, at IDC. "Movie-on-demand solutions demonstrate how easy-to-use technology can reduce consumer pain such as late fees and inconvenience."

The MovieBeam(SM) service, which was launched in Spokane in September 2003, addresses consumer concerns toward movie watching by providing a convenient solution to the hassles of traditional video rental stores. The MovieBeam(SM) service gives consumers instant access in their homes to recent DVD and video releases, with an ever-changing lineup of 100 movies, including New Releases and other Popular Favorites, all available 24 hours a day, seven days a week.

In addition to enthusiastic consumer response, the technology and entertainment industries have recognized the benefits of the MovieBeam(SM) service, which recently won an International Consumer Electronics Show (CES) Innovations 2004 Design and Engineering Showcase Honoree Award. The Award honors superior design and engineering among the year's most technologically advanced products in a wide range of consumer electronics categories. Products considered for the award are judged by a preeminent panel of independent industry designers, engineers and journalists, and product evaluations are based on user value, aesthetics, contributions to the quality of life and innovative design and qualities.

About MovieBeam(TM) Entertainment

The MovieBeam(SM) service is part of Disney's portfolio of digital initiatives and is intended to enhance consumers' entertainment experiences by providing consumers with convenient in-home access to an ever-changing lineup of 100 feature movies. MovieBeam(TM) Entertainment is operated by Buena Vista Datacasting LLC, an affiliate of The Walt Disney Company (NYSE:DIS). The Walt Disney Company is a diversified, international family entertainment and media enterprise with affiliates including Walt Disney Parks and Resorts, The Walt Disney Studios, ABC, Inc., ESPN, Disney Channel, Disney Consumer Products, television and radio stations and Internet Web sites. Learn more about the MovieBeam service at www.moviebeam.com.

About COMsciences Worldwide

COMsciences Worldwide is a market and opinion research firm specializing in wireless technologies and new media headquartered in Los Angeles with offices and affiliates in Europe and Asia. For more information, visit www.comsciences.com.