Movingaggressively into on-line distribution of movies, Canal Plus has acquiredvideo-on-demand outfit MovieSystem.

Foundedin 2000, MovieSystem is a leader in the VoD market and in 2001 established fiveyear VoD output deals with Pathe and Luc Besson's Europa Corp. along with about70 other French production companies.

Thecatalogue now numbers roughly 1500 titles and is accessible in France tosubscribers of DSL television and high-speed internet.

CanalPlus said the acquisition would allow it to "enter with force into the VoDmarket and will reinforce the presence of the Canal Plus group across alldistribution technologies."

MovieSystemfounders Maxime Japy, a former Pathe Video executive, and Emmanuel Montamatwill continue to develop the company, says Canal Plus.