In August 1982, MCA Inc. (then-owner of Universal Pictures), Gulf+Western (then-owner of Paramount Pictures) and Warner Communications reached an agreement to jointly acquire The Movie Channel (TMC), in which the three companies combined would acquire a controlling 75% interest in the service (with each holding a 25% ownership stake) from Warner-Amex Satellite Entertainment. The proposal was motivated by the studios wanting to increase their share of revenue for licensing rights to their films to premium television services, as well as concerns that HBO's dominance of that market and its pre-buying of pay cable rights to films prior to their theatrical release would result in that service holding undue negotiating power for the television rights, resulting in a lower than suitable licensing fee rate the studios would be paid for individual films. The three companies officially announced their agreement in principle to acquire interests in TMC on November 11, 1982. Subsequently, in late December of that year, the U.S. Department of Justice (which had blocked a similar attempt by MCA, Gulf+Western, 20th Century Fox and Columbia Pictures to create a competing pay service, Premiere, in an antitrust case ruling two years earlier in January 1981) launched a routine preliminary inquiry into the proposed partnership.