Universal and Intertainer Partner for Video on Demand

Online entertainment network Intertainer (www.intertainer.com) announced a deal with the Vivendi Universal studios to deliver Universal films on-demand over Intertainer's digital cable platform.

Under the terms of the agreement, Intertainer will have access to all of Universal's new releases, as well as its full catalog of older films. The movies, along with some TV products, will be available on Intertainer's digital cable system starting this month.

"We believe that video on demand is going to become a huge force in home entertainment over the next several years and we're continuing to move forward with a strategy that shows our commitment to that industry," said Holly Leff-Pressman, senior vice-president with Universal, in a statement.

Last December, Blockbuster and Enron Broadband announced a similar agreement where video on demand trails were being launched in Seattle, Salt Lake City and Portland.

In both the Intertainer and Blockbuster deals, the service is video on demand, as opposed to a pay-per-view model. With on-demand, customers can order movies at any time, watch the movie multiple times, and pause, stop and fast-forward the service.

Intertainer's deal with Universal is just the latest the company has made with large Hollywood studios. Just last week, Intertainer and Warner Music Group announced a non-exclusive licensing agreement. In addition, Intertainer also offers movies from Disney, DreamWorks, Sony, Miramax and 20th Century Fox.