HBO bid bests Starz.

In a move that at once bolsters its own theatrical lineup while removing a key member from a rival's roster, HBO outbid Starz Encore on an eight-year output deal with Universal Pictures, beginning with films released in 2003.

The pact, during its term, is expected to be worth in excess of $1 billion, with pictures carrying an estimated value of $8 million per rifle. Starz has an output deal with Universal through 2003. During the first year of the deal, HBO has the fights to 50% of Universal's films. Thereafter, the premium channel will have exclusive access to the studio's pictures.

The HBO-Universal accord follows last year's agreement between Starz and …