Company trials films on flash

PortoMedia is probably the only start-up in the world inspired by the movie Carlito's Way.

Company founder Chris Armstrong explains: four years ago, he set out to his local DVD store to rent a movie. First, he stopped at the cashpoint to get some money. The store didn't have 12 Angry Men, the movie Armstrong wanted. He settled for Carlito's Way instead. He then waited in line, paid for his rental and returned to his car.

Then he remembered another movie, Gone in Sixty Seconds, the title of which got him wondering why the process of renting movies, from start to finish, can take so long.

While other companies see the Internet as the answer to that question, Armstrong has another idea. PortoMedia is setting up kiosks that will let consumers download movies to a flash memory key or portable hard drive.

The kiosks will be packed with hard drives that can hold 350 to 5,000 titles. Users then plug in a memory device from the company, enter a PIN code and buy or rent a movie. When consumers get home, they simply slide the memory device into a dock connected to a TV.

The key to the service is a proprietary USB interface that transfers data at a faster average rate than standard USB devices. A standard-definition movie can be loaded onto a memory device in 8 to 60 seconds, depending on the length and chip speed. High-definition movies, which won't be available initially on the service, can be downloaded in 18 to 45 seconds. The USB interface works just fine with the USB slots on PCs and notebooks.

The company did a trial run in Dublin at the end of 2007, with plans to go live in four US cities toward the beginning of the second quarter, though Armstrong declined to name the cities. Two retailers have signed on to put the company's MoviePoint kiosks in their stores.

More importantly, major studios have agreed to let the company rent standard-definition movies out of the kiosks, he said. Getting permission to build a library of high-quality content has been the bane of several would-be Blockbuster killers. Armstrong wouldn't divulge the name of the studios, but said they were major and well-known.

"We will have them (movies) the same day and date as DVD," he said. The pricing will be about the same.

Advantages over current models
If the company can pull it off -- and that remains a big if -- PortoMedia potentially can short-circuit some of the problems and shortcomings of the various methods for delivering movies. First up is cost. Delivering movies via hard drives and flash memory eliminates many of the packaging and shipping expenses associated with DVDs. Shelf space at retailers now dedicated to discs is also freed up for other products.

In addition, selection is improved. Most video outlets don't have 5,000 titles, he noted. Kiosks further let more companies into the video rental market. The kiosk version holding 350 titles will sell for around $2,000 (£1,000); it could be placed near the counter at convenience stores. Retailers will also be allowed to put their own brands on the box..