Shanghai Media Group is in negotiations with six global media groups, including Warner and Fox, to add Hollywood studio content to on-demand TV services next year, the company said yesterday. 　

he deal gives the company's IPTV (Internet protocol television) clients access to the movie databases of Warner, Sony/Columbia, Fox, Disney/Buena Vista, Paramount and Universal studios, according to BestTV, an IPTV subsidiary of SMG. 　　

The on-demand movie service will be available to Chinese users by the first quarter next year. 　

The foreign media groups will earn royalties according to the demand rate or revenue from advertising embedded in the movies, Shanghai Securities News reported yesterday, citing an unidentified source from BestTV. 　　

Guan Xiaohong, BestTV's media relations official confirmed the issue yesterday but declined to reveal more details. 　　

"We haven't signed official deals yet and we will comply with the regulation of bureaus such as the State Administration of Radio, Film and Television," BestTV said in a statement to the Shanghai Daily yesterday. 　　

The deal is sensitive because Hollywood studios can only release movies in China after a government review process, industry insiders said. 　　

Shanghai launched citywide broadband-based TV services in September and BestTV is the major content provider for the service. 　　

IPTV services, which offer live broadcast channels, video-on-demand programs, weather broadcasts and information on traffic and restaurants, are available in the downtown, bundled with Shanghai Telecom's broadband services. 　

IPTV's user base is expected to reach 5.7 million in China this year, triple last year's level. The number will jump to 16.5 million in 2008, according to iResearch Inc, a Shanghai-based IT research firm. 　　

Meanwhile, Shanghai Media Group has signed an agreement with EMI Group, to cooperate on wireless music and digital music publishing. 　　

Meanwhile, BestTV has signed agreements with Hong Kong TVB, a free-to-air broadcaster and Baidu.com, China's biggest search Website, to provide users with more programs and new services.