RealTime IT News

Paul Kagan Invests in BigStar Video Site

Paul Kagan, chairman and CEO of Paul Kagan Associates, made an equity investment in BigStar Entertainment, an online video superstore launched May 15.

Kagan joined lead investor Morton H. Meyerson in financing the venture, according to the Silicon Alley Reporter.

BigStar, founded by former SonicNet CEO David Friedensohn and former Columbia House Marketing Director David Levitsky, is moving into crowded territory: Reel.com is already a brand name in the online video business, and Amazon.com, Barnes & Noble, and Borders are edging into the arena, the Reporter said.

BigStar plans to compete by being the biggest: it currently carries 100,000 titles, compared to Reel.com's 85,000. BigStar is also laying plans for digital delivery. According to Friedensohn, BigStar is currently working on a system with an unnamed partner to offer downloadable movies to customers outside the U.S. who subscribe to the partner's high-speed cable modem service.