MORGAN FREEMAN PLUGS INTO DIGIBOO: New venture allows folks to rent movies through flash drives.

       The L.A.-based Digiboo launches a pilot program in January with Oregon-based Movie Gallery that will see 100 digital movie kiosks operate in Hollywood Video and Movie Gallery retail stores, according to Variety.

       Samuel Edge, the CEO of Digital Revelations, will become Digiboo's chief technology officer and be involved in day-to-day operations in the new venture.

       Revelations' last tech venture was the digital movie-store ClickStar, a joint venture between chipmaker Intel and Revelations that launched at a time when consumers may not have been ready for digital downloading.

       McCreary and Edge said things are changing. Downloads are speedy and easily played on home entertainment devices. Their involvement in the venture came from a continuing dialogue with Intel.

       "We were invited by Intel a year ago to help put together a technical strategy to distribute digitally, using USB as the medium," Edge said. "USB 3.0 is remarkable for its portability and the ability to walk to a kiosk and walk away in eight to 15 seconds with a movie in your pocket."

       Cohen said that the price point will vary during the pilot program but will likely be comparable to the $3.50-$5.50 that Hollywood Video and Movie Gallery charges for rentals. But Digiboo kiosks will offer more than 1,000 movies and TV shows for rental and sale, he said, and the download system eliminates the need for a trip to return a DVD.