Paramount, MGM, Lionsgate to launch premium TV channel

Viacom Inc.'s Paramount Pictures unit is teaming up with Metro-Goldwyn-Mayer Studios Inc. and Lionsgate to create a new premium channel and video-on-demand service, the companies said Sunday.

The new channel, set to launch in the fall of 2009, would compete against other premium channels, such as CBS Corp.'s (NYSE: CBS) Showtime. CBS and Viacom are both controlled by Sumner Redstone.

Showtime currently has deals in place with Lionsgate and MGM that will expire at the end of the year. Paramount had a deal with Showtime that ended in 2007 and has not been renewed.

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The new venture would have access to Paramount titles released theatrically on or after January 1, 2008, and MGM, United Artists and Lionsgate (NYSE: LGF) titles released theatrically on or after January 1, 2009.

The channel would also have access to the libraries of the studios, which includes "Braveheart," "Forrest Gump" and the successful franchises of "The Godfather," "Star Trek" and "Mission: Impossible."

Viacom (NYSE: VIA) will provide operational support to the venture, including marketing and affiliate services through its MTV Networks division.