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** IMagicTV Branches Into Content With AtomFilms Deal

Telcos buying iMagicTV Inc.'s digital-TV-infrastructure software

will also get the right to show short digital films from

AtomFilms. IMagicTV, maker of the video-on-demand app DTV

Manager, is trying to one-up its competitors, but observers are

unsure it will be effective. Financial details of the deal

weren't disclosed.

AtomShockwave Corp., parent of AtomFilms

( http://update.informationweek.com/cgi-bin4/flo?y=eDGx0Bcmnf0V20MT2k ),

is licensing to iMagicTV the right to distribute 10 new

live-action and animated films each month, each of which can be

viewed for 60 days by telco users. "This is a way to kick-start

deployment of our video-on-demand software," iMagicTV VP Gerry

Verner says.

Russ McGuire, chief strategist for consulting firm TeleChoice,

says AtomFilms probably is asking more for first-run movies and

cable-TV shows. McGuire says the outfit should focus first on

ensuring that its software can show that kind of content. And

from the telcos' perspective, he says, "there are probably better

folks out there" to buy content from than infrastructure firms.

Regardless, AtomShockwave views the deal as an opportunity to be

seen as a bridge between content and technology, says

AtomShockwave syndication VP Brian Burke. It's the first time

AtomFilms' content has been bundled into an app for telcos, he

says. The company typically syndicates its content directly to

cable-TV companies, airlines, and Web sites. Says Burke, "It

expands our breadth in reaching decision makers in certain

vertical markets." - Tony Kontzer

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