Paramount, MGM, Lionsgate to launch new premium TV channel

One part of Sumner M. Redstone's media empire took aim at the other Sunday, when Viacom Inc.'s Paramount Pictures teamed up with two studios to create a premium television channel that would compete with Showtime Networks, which is owned by Viacom's sister company CBS Corp. The venture, as yet unnamed, could be risky, because the cable scene is already crowded with contenders airing feature films and developing original programming. What's more, cable companies might resist adding a channel to their lineups, and if they did tack one on, consumers might balk if it meant an extra monthly charge. But Paramount and its partners, Metro-Goldwyn-Mayer Studios Inc. and Lionsgate Entertainment Corp., have been under pressure to do something. All three have had long-term deals with Showtime, which has been offering to pay far less than before to buy the rights to air their movies, according to people familiar with the negotiations.
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Studios Join to Start Pay Channel
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