http://news.yahoo.com/s/nm/20070918/tv_nm/mgm_dc;_ylt=AqMm7c3OaTcpRmBftAXIobhxFb8C
By Bob Tourtellotte
LOS ANGELES (Reuters) - Film and television studio Metro-Goldwyn-Mayer
Inc unveiled plans on Tuesday to launch a high-definition television
channel this fall on the DirecTV satellite service with a mix of
movies and original programs.
The channel is MGM's first stand-alone HD service in the United States
and it marks a major expansion for the studio.
Chief Executive Harry Sloan called the launch a "milestone event" for
MGM, the home of the James Bond film franchise.
"To grow significantly, we need to buildets. Over the last few
years, we've launched channels all over Europe and now an HD channel
in the U.S. gives us that growth opportunity" here, Sloan told
Reuters.
He declined to discuss financial details.
For DirecTV, the deal helps bolster content for its plans to roll out
100 new HD channels by the end of this year.
HD, the high-definition digital TV standard that offers viewers
sharper pictures and better sound, is expected to be a major growth
opportunity. U.S. officials are mandating a switch from analog to
digital signals and HD is widely seen as being adopted over lower
quality standard definition, or SD.
Moreover, satellite and cable TV providers are expected to promote HD
heavily to boost their own subscriber growth. The number of U.S. homes
receiving HD signals is expected to reach as high as 40 million by
2012, researchers forecast.
MGM owns a library of more than 4,100 movies and Sloan said the
company already has converted 1,200 titles to HD. Beyond replaying old
movies, the MGM Channel is expected to provide original shows such as
behind-the-scenes tales from making new movies or live coverage of red
carpet premieres.
Sloan said the new MGM HD channel is getting good response from other
satellite and cable TV operators.
"We expect shortly to announce other platforms and expect channels to
be well-received," Sloan said.
Sloan took over management of MGM in 2005 following its acquisition by
an investor group. Since then, he has embarked on several growth
initiatives, including launching MGM TV channels overseas and
partnering with Tom Cruise and Paula Wagner to revamp the old United
Artists film label.
MGM is owned by private equity firms Providence Equity Partners, Texas
Pacific Group and others, as well as media and electronics company
Sony Corp and cable TV operator Comcast Corp.
DirecTV is controlled by News Corp, but it has agreed to swap its
controlling stake to Liberty Media Corp, a deal that awaits regulatory
approval.
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