Intel is investing an undisclosed amount of money in the new venture, which has been called ClickStar. Its aim is to provide an online service which will enable consumers to access, pay for and download films before they are available on DVD format. It will also provide access to internet-only channels by artists or other content owners.
Reports claim the move is a major step forward for Hollywood, which has so far refused to abandon its traditional distribution process for motion pictures out of an apparent fear of a loss in total revenue and the damage it may do to its relationships with theaters and retailers.
Movie bosses are said to have avoided the apparent pressure to digitize movie content after witnessing the ongoing battle between the music industry and illegal file-swapping services, which has sprouted several lawsuits over the past few months in a desperate bid to prevent piracy.
Intel and Freeman, however, believe the new company will offer a better alternative to tackle the issue of piracy by making films easier to buy than to copy illegally.
The company is thought to have held discussion with studios and producers, but none have signed up to the service as of yet.
