The owner of Hollywood Video stores has acquired a Burbank-based movie-on-demand service for just less than $10 million, it was announced Thursday. Movie Gallery, Inc. bought the assets, technology and network operations of MovieBeam, Inc. with plans to begin offering digital movies through its video stores and web site shortly. MovieBeam provides new releases and popular favorites on-demand from all major studios to viewers in 31 metropolitan areas. Movie Gallery, based in Alabama, is the second largest North American video rental company with over 4,600 stores in the U.S. and Canada operating under the brands Hollywood Video, Movie Gallery and Game Crazy. Movie Gallery intends to use MovieBeam’s existing infrastructure to underpin the development of alternative digital delivery capabilities. The acquisition is the first phase of a plan to bring digital content to its customers, said Movie Gallery Chairman and CEO Joe Malugen. “We believe the MovieBeam service provides the best video-on-demand service available in the marketplace today and is a strong compelling complement to the consumer retail video store experience,” Malugen said.