111Pix.com will launch Monday as a business-to-business service for content creators, sales companies and producers to share content.
The company plans to launch its consumer platform, 111Pix SuperMall, in November 2007. Services offered will include including downloads to rent and streaming, but one of the founding partners, Alki David, said the core business will be downloads to burn.
111 Pictures chairman David said the 111Pix.com platform is unique in that will allow content owners to determine where and their products are distributed (for example, a distributor could allow a download to a customer in France but not in Germany) and also unique due to its transparent accounting practices.
Costs to content owners will be $18/hour for encoding of content and about 25 cents for each gigabyte transferred. There will be no hosting fees. Consumers will pay an average of $3.50 per each film download.
'This really is a system made by a distributor and content owner for content owners and distributors alike,' David told ScreenDaily.com. 'It respects the territories already divided. A lot of people's livelihoods depend on how the business is structured now, and this is the only platform of its kind that respects that. It gives complete control to the content owner.'
111Pix.com has also created proprietary DVD On the Fly technology that lets consumers create custom DVD compilations.
During the next year, before the SuperMall launches, the company hopes to sign a range of content licensing agreements and develop white-label platforms for partners. Currently, the site has rights to the 111 Pictures library including the Greek feature Brides, new Billy Zane/Kelly Brook feature Fishtales and 1984's Oxford Blues starring Rob Lowe.
111Pix also has rights to the Slam Dunk library and titles from Bristol Media.
David said the company would spend $200m to promote the SuperMall, with funding for that marketing budget coming from private equity and advertising.
The technology platform is being run out of Stan Fiskin's Envisionext office in New York, but the head office will be in London.