Los Angeles - Movie Gallery (NASD: MOVI), the movie rental chain that purchased Disney's Moviebeam set-top-based download service for $10 million less than a year ago, will shutter the service on Dec. 15, BetaNews reports.

Disney (NYSE: DIS) spent a reported $70 million developing Moviebeam, which delivers movies to a $250 TV set-top box over unused portions of the broadcast spectrum, and charges between $1.99 and $3.99 for rentals.

Disney shut the service down in 2005, but it was re-launched in February 2006 with over $50 million in venture capital from Mayfield Fund, Norwest Venture Partners, Cisco, Intel, Vantage Point Venture Partners and Disney's ABC.

The service was available in about 30 cities, and BetaNews reports that newer customers may be eligible for a refund on the set-top box.

Related Links:
http://snipurl.com/1uxjc (BetaNews)

http://www.moviegallery.com

http://www.moviebeam.com