, which offers movies for download over high-speed internet connections, has reportedly cancelled its planned $50m initial public offering due to unfavourable market conditions.

The US-based company originally filed with the SEC to float on the Nasdaq in April. But in a filing yesterday it said it 'does not believe that the public markets would favourably respond to an initial public offering of the company's securities at the current time.'

SightSound, which claims to be the first web-site to commercially distribute a feature on the internet, had planned to use proceeds from the float to acquire more content, develop its own content and pay litigation expenses connected with protecting its patents.