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Nov-04-2009Best Buy to Launch Digital Movie Service(topic overview)
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Best Buy will license software and infrastructure from Sonic Solutions, which will be available on the company's own Insignia brand of TVs and Blu-ray players. Best Buy is reportedly in talk with other electronics manufactures such as Samsung, Sony, Panasonic and Toshiba to include the service on their devices. For example, if you buy an Insignia brand Blu-ray player from Best Buy and link it to the Internet, you will see an on-screen co-branded Best Buy and CinemaNow movie download service where you can buy or rent movies, often on the same day they get released on DVD. On top of Best Buy's own brand electronics, the retail giant plans to deliver CinemaNow's software on personal computers and mobile phones sold from its stores as well. The Insignia-branded Blu-ray players from Best Buy will also stream Netflix movies, following a deal between the two companies in October. Best Buy acquired the Napster music streaming service last year as well, in a bid to secure its position in the future of the digital media market. Best Buy's upcoming online streaming movie service is set to face stiff competition when launched from the likes of Apple, with its popular iTunes Store and Netflix -- with mail-order DVD rentals and streaming of older releases. [1] Best Buy says that it plans to embed Roxio CinemaNow technology on a wide range of devices it sells, including connected TV sets, portable media players, PC's, Blu-ray Disc players, set-top boxes and mobile phones from a variety of manufacturers. It also plans to launch a marketing program to "educate consumers about the increased convenience, flexibility, and choice digital content delivery affords." According to the companies, the new Roxio CinemaNow-powered service will allow consumers to buy or rent an extensive library of premium content, including new-release movies, TV shows, independent films and older catalog movies--many of which will be available day-and-date with their DVD release. The companies say that they also plan to work with their studio partners on new service and content offerings, including ones that leverage digital copies to bridge physical disc sales and electronic sell-through.[2] To start, the electronics retailer will embed Sonic's Roxio CinemaNow technology in web-connected TVs, portable media players, PCs, Blu-ray players, set-top boxes, and mobile phones from a variety of yet-to-be named manufacturers. Best Buy customers will be able to buy or rent movies from CinemaNow, some of which will be available on the same day as their DVD release. Best Buy made a related move this summer, digitally expanding its marketing efforts via the TiVo digital video recorder (DVR) service. It announced a partnership with TiVo to create a user interface for customers who buy TiVo DVRs from Best Buy, writes RetailerDaily.[3]
NEW YORK, Nov 3 (Reuters) - Best Buy Co Inc ( BBY.N ) plans to start an online service that allows consumers to buy, rent and download movies and television shows, the electronics retailer said on Tuesday. The system, based on Sonic Solutions' ( SNIC.O ) Roxio CinemaNow service, would be built into devices sold at its stores, including television sets, portable media players, computers, mobile phones and other devices from a variety of manufacturers.[4] Best Buy is reportedly partnering with Sonic Solutions to offer customers a streaming service that provides on-demand access to movies and TV shows. Best Buy will implement Sonic's Roxio CinemaNow technology in various devices sold at its stores, including TVs, portable media players, computers, mobile phones and more, from a number of manufacturers.[5]
Best Buy will embed Sonic's Roxio CinemaNow technology on a number of devices, like web-connected TVs, portable media players, PCs, Blu-ray players, set-top boxes, and mobile phones. This will include a variety of manufacturers, Best Buy said, but the store did not reveal any specific companies at this time. The multi-year agreement allows Best Buy to license Sonic's technology to make its on-demand digital content delivery a standard feature on connected devices.[6] Electronics retailer, Best Buy, and Sonic Solutions, the digital media company that last year acquired the pioneering broadband VOD service, CinemaNow (it subsequently added "Roxio" to the service's name in order to make its branding consistent with its other products), announced Tuesday that they have formed a strategic partnership that will enable Best Buy to launch a broadband VOD service based on Roxio CinemaNow. The companies, which announced a partnership earlier this year ( see the article published on itvt.com, June 7th ) but provided few details at the time, say that they have signed a multi-year agreement, under which Best Buy will license and deploy the Roxio CinemaNow technology and services platform, in order to make on-demand digital content delivery a standard feature on connected consumer electronics devices sold in U.S. Best Buy retail stores and on BestBuy.com.[2] Twitter Gets Dedicated Device Wall Street Journal It's safe(ish) to assume that you've developed a truly killer app once device makers start making products dedicated solely to supporting your service. Even though it was at Twitter's urging, a company named Peek has developed just such a device. Barnes & Noble Has E-Reader Hiccup eweek It looks like Amazon and its Kindle e-reader can count on monopolizing the digital book market for at least a little while longer. IT startup Spring Design is claiming that Barnes & Noble's forthcoming e-reader Nook infringes on its own. Gawker Launches TV Business Insider Gawker has long been an admirer of juicy video clips, but on Tuesday it made its devotion official with the launch of Gawker TV. Company head Nick Denton often attributes traffic peaks to the popularity of various video posts --. Best Buy Makes Digital Leap NYTimes Bits Blog Best Buy, a top seller of DVDs, is not ignoring their likely extinction. It's expected to announce a partnership with Sonic Solutions' Roxio CinemaNow service, which will allow it to stream first-run DVDs directly to consumers online.[7] Taking a logical step in digital migration, Best Buy (NYSE: BBY ) is teaming up with Sonic Solution's (Nasdaq: SNIC ) Roxio CinemaNow to offer online movie rentals and purchases. It makes sense on paper. As the undisputed champ of consumer electronics, Best Buy will be able to market the licensed service to its tech-bent shoppers. The CinemaNow platform provides an ideal ecosystem for consumers to watch flicks on Web-blessed devices -- TVs, computers, disc players, smartphones, portable MP3 players, and so on -- that they can buy at Best Buy.[8] Best Buy and Sonic Solutions announced a strategic relationship that offers a new on-demand movie and entertainment service powered by Sonic's Roxio CinemaNow'that will allow consumers to have access to buy or rent a library of premium content. With the new Best Buy service, consumers will have access to buy or rent an extensive library of premium content including new movies, TV shows, independent films, and older catalog movies, which they will be able to access on devices in the broad ecosystem. It is anticipated that new titles will often be available on the same day they become available on DVDs in retail outlets. Together with their Studio partners, Best Buy and Sonic plan to also collaborate on new service and content offerings, including those that leverage digital copies to bridge physical disc sales and electronic sell through.[9]
Best Buy will partner with Sonic Solutions' Roxio CinemaNow to offer a movie download service that will pipe movies to a range of electronic gear from televisions, DVD players, computers and phones sold at the retail giant's stores. The move is seen as a sign of the times for the leading retail seller of DVD movies, Best Buy, who is seeing its retail sales of DVD discs shrink as more people opt to rent movies via digital distribution.[1] The retailer will use Sonic's Roxio CinemaNow service to provide digital content to Blu-ray players and other Web-connected devices. Blockbuster also uses CinemaNow for its On Demand service, which includes digital content delivery to embedded devices. Best Buy's service will carry their brand name, and will be promoted in stores with space alotted for connected devices and accessories, as well as efforts to educate consumers about the service.[10] The Richfield-based retailer said Tuesday it is teaming with Roxio CinemaNow to launch a movie download service that will let consumers pipe Hollywood hits into any device sold by Best Buy that connects to the Internet -- TV sets, portable media players, computers, Blu-ray DVD players and mobile phones.[11] The Roxio CinemaNow technology will be available on various devices sold by your local Best Buy store. These include connected TVs, PMPs, PCs, Blu-ray players, set-top boxes and even mobile phones. Once the on-demand service is in place Best Buy customers will be able to buy or rent movies and TV shows straight from their home or while they'''re on the go.[12]
Best Buy is setting up a digital delivery service with CinemaNow, according to the Associated Press. That means you'll be able to shop CinemaNow's video library, which will be included on all the Web-connected gizmos at Best Buys stores. If you buy flat-panel TVs, Blu-ray players, PCs, and mobile phones at Best Buy, you can get downloads of videos the same day they are released on DVDs. The AP story notes this marks the latest step away from the DVD format. "Apple Inc., Amazon.com Inc. and DVD-by-mail pioneer Netflix Inc. all have been winning over consumers with their own digital delivery systems," according to the article.[13] The software making it possible to shop CinemaNow's video library will be included on all the Web-connected devices sold in Best Buy's more than 1,000 U.S. stores. That means consumers who buy flat-panel TVs, Blu-ray players, personal computers and mobile phones from Best Buy would be able to get downloads of videos the same day they are released on DVDs.[14] In September, Blockbuster announced it was working with Sonic to offer Blockbuster's streaming movie service on consumer electronic devices starting with TiVo DVRs and Samsung high-definition televisions and Blu-ray players. "All these guys Best Buy, Blockbuster and Netflix realize is that the era of the boxed DVD is about to end," said Tim Bajarin, president of Creative Strategies, a technology consulting firm. "They all have to make the transition to the next generation of movie distribution, streaming directly to the consumer." Best Buy, analysts say, has the clout to press both movie studios and consumer electronics companies to adopt a one-time payment model and ensure that movies play on many devices. The company has the ability to market such a service aggressively to consumers. Sonic, based in Novato, Calif., is making a transition of its own. It is best known for its DVD-authoring software tools used by the studios.[15]
For Best Buy, the nation's largest consumer electronics retailer, the partnership with CinemaNow is another step into the rapidly changing world of digital downloads for everything from music to television to movies. Best Buy bought digital music service Napster about a year ago, and last month announced a deal to stream Netflix's movie library through its Insignia Blu-Ray disc players.[11] SAN FRANCISCO — Best Buy Co. is trying to nudge consumers away from its stores' DVD aisles by making it easier for them to rent and buy movies over high-speed Internet connections. The largest U.S. retailer of consumer electronics is setting up its digital delivery service in partnership with CinemaNow, which has deals with the major movie studios.[14] Best Buy Inc. is expected to announce today that it is partnering with online video provider CinemaNow to create a movie downloading service that would be integrated into most devices the electronics retailer sells that can be connected to the Internet, including televisions, DVD players, computers and phones. Facing an industrywide decline in sales of physical media such as DVDs and CDs, Best Buy has been making an aggressive push into digital delivery.[16] Ryan Pirozzi, director of digital media for Best Buy was quoted by Los Angeles Times as saying, "Digital is developing as a channel and we're forecasting that by 2012 it will be a significant, double-digit percentage''' of the revenue from movies watched at home." Even CinemaNow, the online video provider, hasn'''t achieved much success with its 'movies on demand' service. With its tie up with electronic retailer, the company is hoping to reach to larger audience to turn downloading movies into a mass market phenomenon. Currently, Cinema Now is offering more than 20,000 film titles, mostly new releases, through its online service.[17]
According to LA Times, retailer of consumer electronics, home office products, entertainment software and appliances Best Buy Co., Inc. (NYSE: BBY ) is expected to partner with CinemaNow, Inc. to introduce a new movie downloading service. As the sales of movie discs and CDs fell, Best Buy is planning to offer this online service to increase turnover. Until today, DVD sales were down 13% in this year. The partnership is expected to be launched either at the end of this year or in the early part of the next year.[18] The new movie downloading service will be marketed in the company's stores, with employees trained to explain and promote it to customers. The partnership to be unveiled today expands on one announced earlier this year in which CinemaNow downloads have been available on Best Buy's website and some of the devices the retailer sells. The new partnership, scheduled to last at least three years, would give Best Buy its own digital movie brand.[16] Best Buy is stepping up its effort to promote downloadable content by choosing to make Sonic Solution's CinemaNow service a common feature on all types of electronic devices it sells. The retailer appears to be trying to standardize at least some of the software that electronics makers such as LG, Samsung and Sony install on their devices to let consumers download movies, television shows and other content.[19] Best Buy would have a license to sell movies for multiple years. The CinemaNow platform would be an embedded feature on the devices that can use it under this agreement. Sonic Solutions also let Best Buy acquire some common stock under this deal. This deal would enable users to buy or even borrow "a vast library of premium content". These would be available on Web-connected TVs, as well as portable media players and PCs.[20] The two services can complement each other on the same device without too much redundancy, similar to the way Netflix Instant and Amazon On Demand successfully coexist on devices like the Roku set top box. Blockbuster On Demand is powered by Roxio CinemaNow, and Sonic Solutions yesterday said that their partnership increased video-on-demand attach rates by more than 50% over other CinemaNow powered services thanks to the familiar Blockbuster brand name. Neither Best Buy nor Sonic Solutions went into great depth about which devices will be included in the multi-year deal announced today, but Sonic Solutions is holding a conference this afternoon to go over the specifics of the agreement with Best Buy.[21] Best Buy and Sonic Solutions, the owner of the popular Roxio CinemaNow movie service have signed a deal today that will see the giant retailer begin selling Sonic's services. Says the WSJ : "Sonic said in a federal filing it had issued warrants to purchase 668,711 of its common shares for $100,000.[22] New York, November 3 -- Best Buy is already selling services online, but to emerge as a bigger player in this segment, the company is expected to announce today a tie-up with Sonic Solutions' Roxio CinemaNow to launch digital movie service.[17] Sonic Solutions' Roxio CinemaNow, which will power Best Buy's movie streaming service, already provides technology for TiVo DVRs and BlockBuster's online video store.[1] "Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," Brian Dunn, chief executive of Best Buy, said in a statement. CinemaNow is currently in this market, providing the technology for TiVo DVRs and BlockBuster's online service.[23] "Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," said Brian Dunn, CEO of Best Buy. "It also enables us to make deeper and more meaningful connections with our customers and expand our relationships with content owners and hardware vendors to create compelling new home entertainment solutions." Together with their Studio partners, Best Buy and Sonic plan to also collaborate on new service and content offerings, including those that leverage digital copies to bridge physical disc sales and electronic sell through.[24] "Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," Best Buy CEO, Brian Dunn, said in a prepared statement. "It also enables us to make deeper and more meaningful connections with our customers and expand our relationships with content owners and hardware vendors to create compelling new home entertainment solutions." Added Sonic Solutions president and CEO, Dave Habiger: "With Best Buy's ability to drive in-store promotion and education, consumers will come to quickly understand and appreciate the convenience, flexibility, and control that digitally delivered video entertainment affords them.[2] Sonic Solutions, CEO and president Dave Habiger, also informed '''Consumers will come to quickly understand and appreciate the convenience, flexibility and control that digitally delivered video entertainment affords them'''. He added '''With Best Buy's focus, we expect on-demand entertainment to quickly grow into a mass market activity, with digital sell-through and rental becoming a significant new revenue stream for content owners.'''[20]
Today, one - and possibly two - new offerings joined the growing lineup: a tie up with Best Buy and Sonic Solutions and a rumored $30 per month TV subscription service from Apple's iTunes. These latest initiatives may represent the business model's best case for mainstream adoption given the companies behind them. Right now, as these new services roll out onto the internet, the focus is on the business model and how sustainable it is for content providers - namely cable and TV networks. As these services take off, though, the options for marketers will undoubtedly grow. Online marketers want to advertise around content that consumers are watching - and these applications show a lot of promise, according to MacNewsWorld.[3] Not being stupid at all, Best Buy got Sonic 670,000 warrants to buy Sonic stock at $4.98, which is already making a profit for the venture as Sonic is trading at $6.50 in the aftermarket. This new service will let users buy or rent new movies, TV shows, independent films, and older catalog movies via download. The companies say that new titles will often be available on the same day they become available on DVDs in retail outlets, which makes them complementary rather than cannibalistic to Netflix's streaming service.[25] When the service is in place, Best Buy customers can buy or rent from the CinemaNow catalogue, which includes access to new movies, TV shows, independent films, and older catalogue films. Some of those movies will likely be available on the same day as their DVD release, Best Buy said. Both companies said they also plan to work with movie studios on "new service and content offerings" but did not elaborate.[6] The new service, which is yet to be named, will allow users to access content including new movies, TV shows, independent films, and older catalog titles on a variety of devices. Best Buy said new titles will often be available on the same day they become available on DVDs in retail stores.[26]
When the hardware is in place, customers can buy or rent movies and television shows from CinemaNow and watch the same piece of content on any device that offers the service. Sonic and Best Buy said they are working with the studios to offer more content for download on the same day that physical media is released to DVD rental services such as Netflix and Redbox.[19] Authored by Mark Hefflinger on November 3, 2009 - 9:20am. Minneapolis, Minn. - Electronics and media retailer Best Buy (NYSE: BBY) announced on Tuesday that it will launch its own branded, on-demand movie and entertainment service, powered by Sonic Solutions' Roxio CinemaNow.[27] The retailer, which is now beginning to provide details of a partnership with Sonic Solutions that was announced in June, will rely on Sonic's Roxio CinemaNow movie service to handle movie delivery and the technological backend for the service, saving Best Buy from having to create a digital movie service from scratch.[28] The new digital storefront will be powered by Sonic Solutions (Nasdaq: SNIC)'s Roxio CinemaNow service, and will be introduced initially on Best Buy's Insignia line of CE devices.[29]
Updated below : Best Buy and Sonic Solutions, parent company of digital download service CinemaNow, have released more details about the on-demand content partnership they announced this summer.[30]
Today, to confirm my suspicions, Best Buy announces a deal in which all the devices it sells with internet access from a variety of manufacturers will be able (read forced) to stream CinemaNow movies via a deal with the company that provides the streaming technology, Sonic Solutions.[25] Mumbai: Sonic Solutions' Roxio CinemaNow has signed a deal with Best Buy to sell downloadable movies.[20]
The giant electronics retailer has inked a deal with Sonic Solutions which will bring a new on-demand movie and entertainment service to Best Buy customers.[12] President of Warner Bros., Thomas Gewecke, shared '''Best Buy is in a great position to expand the market for on-demand home entertainment '''. He added '''The combination of Sonic's platform with Best Buy's expertise in selling consumer electronics, video content and technical services creates an opportunity for a wide variety of exciting new consumer offerings.'''[20] "Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," Brian Dunn, chief executive of Best Buy, said in a statement. "It also enables us to make deeper and more meaningful connections with our customers and expand our relationships with content owners and hardware vendors to create compelling new home entertainment solutions."[6] "Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," Brian Dunn, chief executive of Best Buy, said in a statement. Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.[31]
"With Best Buy's focus, we expect on-demand entertainment to quickly grow into a mass market activity, with digital sell-through and rental becoming a significant new revenue stream for content owners," said Dave Habiger, president and chief executive of Sonic Solutions, in a statement.[6]
Under the terms, Best Buy acquired warrants to purchase shares of Sonic Solutions common stock. Users will be able to buy or rent "a vast library of premium content" on Web-connected televisions, portable media players, PCs, Blu-ray disc players, set-top boxes and mobile phones by companies such as Archos, Dell, Hewlett-Packard, LG, Microsoft, Nintendo, Pioneer and TiVo sold by the retailer.[32] The download service, wholesaled by Sonic, will be offered as a Best Buy service and will be able to be used on all the devices Best Buy sells with internet access. These devices include: web-connected television sets, portable media players, PCs, Blu-ray Disc players, set-top boxes, and interestingly, mobile phones.[25]
Best Buy will load up CinemaNow softwar e on internet-connected consumer electronics sold at the company's retail stores. That includes computers, portable media players, Blu-Ray players, set-top boxes, mobile phones, and internet-connected television sets. Customers that purchase one of these items will be able to rent or buy videos from a catalog with about 22,000 titles.[33] CinemaNow was one of the earliest online movie suppliers. It has a library of some 20,000 titles, mostly new releases, but has been left in the dust by the Big Three, not to mention VOD offered by cable companies and other providers who control STBs. Best Buy will shoulder its way into the competition by embedding software into TVs and Blu-ray players it sells under its brand name, but also is talking with other electronics manufacturers--including computer and mobile phone manufacturers--about including its software in their products.[24]
Blockbuster's movie service, the backend of which is run by CinemaNow, is now available on TiVos and Samsung HDTVs and Blu-ray players and set to debut on other devices in coming months. Best Buy has been stepping up its digital commitment in recent months. Two weeks ago, it announced a partnership to bring Netflix's streaming movie service to its Insignia Blu-ray players.[28] Best Buy's move into digital movies will closely hew to the paths broken by Netflix, Blockbuster and other competitors, using a branded movie service available through Web-connected Blu-ray players and other devices made by multiple manufacturers.[28]
The partnership will also see Best Buy acquire warrants to purchase shares of Sonic stock. Best Buy will offer the Roxio CinemaNow-powered service from its website, and will also market a range of connected consumer electronics devices sold in its stores -- including the Insignia brand of televisions and Blu-ray players.[27] Sonic's Ely said in coming months, the company will make it easier for consumers who buy a movie from any Roxio CinemaNow-powered movie service to watch it through any other service it powers. A customer who buys a movie through Blockbuster.com on their TiVo would be able to watch it on their Insignia Blu-ray player through Best Buy's movie service.[28]
The movie technology will be embedded in Best Buy's private-label Insignia brand TVs and Blu-ray players. Best Buy spokesman Scott Morris said the company is in talks with manufacturers such as Samsung, Sony, Panasonic and Toshiba to add it to their devices.[11]
Best Buy and CinemaNow content will also use Widevine Technologies Inc.' s digital rights management (DRM) technology to secure content across multiple devices. By doing so, Best Buy could enable a consumer to buy a title once and watch it on multiple platforms. A consumer could choose to watch the title on an Insignia big-screen TV, download it to a PC, or possibly even take it with him on the go using a portable DVD player or other mobile device.[29] Boston (DbTechNo) - It is being reported that Best Buy is preparing to enter into the digital download market, by announcing a plan to set up a system which would allow consumers to download movies over the internet. Best Buy will be teaming up with CinemaNow to develop their service, which is yet another slap in the face for video rental stores such as Blockbuster and others of a similar nature.[31] Best Buy says it will launch a marketing blitz to educate consumers (and drum up interest) in the digital download service. Sonic has a similar deal with Blockbuster, powering its recently-launched OnDemand video rental service. Release. Updated : From the SEC filing by Sonic, details of the warrant: It issued a warrant to purchase 668,711 shares of its common stock to Best Buy in consideration of $100,000.[30]
The fact that virtually every consumer electronics device that Best Buy sells that can run the software soon will, means that CinemaNow is about to become a much bigger name in digital media, and that could help the companies take on Apple's iTunes and Amazon's video on demand services.[33] Best Buy said today it is partnering with online video provider CinemaNow to create a movie download service that would be built into most of the electronic devices it sells that can be connected to the Internet.[26] Now you can count Best Buy in the running for video download domination. Best Buy officials announced today that they are partnering with CinemaNow to create their own movie/TV show download service that can be accessed through some of their electronic devices that connect to the internet.[34]
Best Buy Innovates Announcing a new service to stream video to a multitude of platforms, Best Buy unveils a service to stream video and first-run movie releases onto all electronic devices sold by the retailer.[23] I've watched a few movies using Netflix streaming service and the video quality is pretty good. As a subscriber of netflixs I enjoy having both online and DVD available. Netflix had some growing pains but lately they have been very reliable. I've steered clear of Best Buy as a retailer, I'll certainly be careful of them as they become the middle man for internet entertainment.[5] Best Buy isn'''t the only hawker of multimedia entertainment to be shying away from physical DVDs. It was only last month that Netflix CEO Reed Hastings ''' head of a company that rents movies on disk as well as through video streaming ''' predicted in a podcast that disks may lose their number-one spot within the company'''s video distribution scheme after another two years.[35]
Best Buy's upcoming service, will stream online directly to consumers first-run DVD movies from Roxio CinemaNow's library, which holds over 20,000 titles. The on demand service (which will not require a monthly subscription fee) is expected to be up and running sometime late this year or in early 2010.[1] Best Buy will license Sonic's Roxio CinemaNow VOD platform to make movies and TV shows available through BestBuy.com; it will also embed the tech into various web-connected devices it sells, including HDTVs, PCs, set-top boxes and mobile phones.[30] After inking the deal with CinemaNow, owned by Roxio, Best Buy enters the field in competition with Apple (I-Tunes) and Netflix. Currently in place in Best Buy's Insignia brand, this service will be included free on devices which play movies.[23] Big box electronics retailer Best Buy is throwing its big hat in the ring to become the latest player in the congested segment of online movie download services, going head-to-head with Apple, NetFlix and Amazon.[24] The new offering from Best Buy will be competing with the likes of other online movie services from Amazon.com, Netflix and Apple's iTunes Store.[26] Best Buy to Open Online Movie, TV Store Bloomberg Retailer Best Buy plans to compete with Apple's iTunes with a new online store for movies and television shows.[7] The available content will include new movies, television shows, independent films and older catalog movies, according to Best Buy. The retailer expects to offer new titles the same day they are released on DVD.[32]
A Best Buy representative told the New York Times' Steve Lohr that the service will be available early next year, and that the goal is to let us pay for a movie once and then watch it on an array of devices: not just TVs and PCs but also media players and phones.[36] The idea is to let consumers pay for service once and eventually watch movies on any device, from television, personal computer to media player and smartphone, stated Chris Homeister, senior vice president, Best Buy.[17] The idea, said Chris Homeister, senior vice president for entertainment at Best Buy, is to let consumers pay once for a DVD and then eventually be able to play it on any device: television, Blu-ray disc player, personal computer, handheld media player or smartphone.[15]
Best Buy is not stopping with televisions, DVD players and Blu-Ray devices. It will load the service, which will not charge a monthly fee, onto cell phones, desktop computers and laptops that are sold at its retail locations. As one of the nation's largest reseller of electronics, this positions the CinemaNow service to be a market leader in a relatively short timeframe.[23]
Last year the company acquired online music service Napster for $121 million. Best Buy's partnership with CinemaNow, which is expected to be launched late this year or early next year, comes as DVD sales are down about 13% so far in 2009.[16] The company has yet not named the service, which is expected to be operational early next year. With this new alliance with CinemaNow, Best Buy is hoping to carve a niche for itself in the delivery market, as selling just hardware has, over the years, increasingly lowered profits margins.[17] Of particular use are the company's retail stores, which can be used to market the as-yet-unnamed service. Best Buy had previously offered some CinemaNow properties on its website, but the new effort will be a branded product with the retailer deciding on design and pricing.[37] The service has yet to be named, but is part of a a multi-year agreement with CinemaNow. Best Buy said new titles will often be available on the same day they become available on DVDs in retail stores.[34]
To outflank rivals, Best Buy'''s top priority would be to make the whole process of distributing movies simpler. The company'''s biggest advantage is its retail stores. Considering this, Best Buy will be marketing the new service through its store with training guiding the customers through the process of downloading movies.[17] The company plans to experiment with numerous business models including purchases, rentals, subscriptions and advertiser support. It also will emphasize the ability to watch movies on televisions as well as computers and mobile devices. "This is certainly a very crowded space and we're going to work to translate our customer insights into a more compelling service than those out there currently," Pirozzi said. Best Buy's biggest advantage is its retail locations.[16] Best Buy may try numerous business models ''' like purchases, rentals, subscriptions or advertiser support. Those who downloaded the movies can watch them on TVs, computers or mobile devices.[18]
Best Buy's new service will allow customers to buy, rent and download new movies, independent films, and older catalog movies along with TV shows.[5] The Best Buy service is expected to offer access to new movies, classic oldies, independent films and television shows.[11]
A customer would purchase the product and embedded therein would be the service, co-branded with Best Buy and CinemaNow, to download movies on demand. CinemaNow offers a host of titles which is growing daily and customers will be able to download onto their device a movie on the day of its release.[23] CinemaNow competes with Apple's iTunes and, to a lesser extent, Netflix's and Amazon's Unbox online download services. Apple in particular represents a growing threat to Hollywood and retailers because it controls which movies and other software are funneled to its hardware, including computers, the Apple TV set-top box, iPods and iPhones. Cupertino (Calif.) -based Apple also has its own stores in which to sell products. As its devices grow in popularity, that king-making role is causing growing unease among Apple's rivals.[19] Apple reportedly wants to launch the service by early next year, but has not made any announcements about any content companies wanting to give it a go. Disney might be expected to be among the first to agree to the service, having seen significant success when it was the first to allow its content on iTunes, according to the Apple Insider. Other examples of over-the-top initiatives include Epix, a new subscription cable movie channel that also streams to the web, and Walt Disney Co.' s Keychest service, which will give consumers digital rights to content so it can be viewed on multiple devices. Time Warner and Comcast are working on another initiative, dubbed "TV Everywhere," which would allow subscribers to access their favorite cable content on other devices.[3] Blockbuster Inc. also has a deal with CinemaNow that lets people rent movies over the Internet. Netflix gave an indication of the growing popularity of new video-delivery methods in its earnings report last month. It said that 42 percent of its subscribers streamed at least 15 minutes of video through its Internet-viewing service during the last quarter, up from 22 percent at the same time last year.[14]
Ely said as part of the deal, Best Buy will train employees on digital movies and devote space to connected set-tops and accessories, and spend money to educate consumers and promote the digital movie service to encourage consumers to try it out.[28] Best Buy sells a lot of DVDs, but it is taking another step to get ready for the day when that business shifts online with a deal to stream movies from CinemaNow.[15] The announcement that Best Buy is teaming with CinemaNow on movie downloads is yet another sign that DVDs are plummeting fast into a steep downward trajectory. As my PC World colleague Daniel Ionescu pointed out today, Best Buy, the leading retail seller of DVD movies, is now seeing those sales fade away as more people move to renting movies through digital distribution.[35] Best Buy is planting its flag in the growing market for online movies in a big way, banking that giving consumers access to on-demand downloads will help counter shrinking sales of DVDs.[11]
Making online movie distribution simpler for consumers will be a top priority for the Best Buy service, Pirozzi said.[16] Most details aren't yet public, but Best Buy plans to launch the initiative in early 2010. Studios are considered the primary obstacle as they are often hesitant to provide new movies through online services, but the necessity of buying a hard copy is expected to assuage some of these fears.[38]
The new service will only be launched at some point early next year so get ready to invade your local Best Buy store in order to find out more details about how it will actually work.[12]
The effort is an acknowledged attempt to brace Best Buy for a transition to a primarily Internet-only video era. Linking Internet viewing to existing DVD sales will theoretically expose customers to a Best Buy-controlled video platform that they can eventually rely on exclusively when physical media is no longer a feasible option in stores. Best Buy has also remained partly service-independent and just last month added Netflix to its Insignia players to extend their longevity beyond Blu-ray.[38] "Our goal is to have broad availability in the marketplace, across multiple devices." Last month, Best Buy announced a deal with Netflix to stream its movie library to Best Buy's Insignia-branded Blu-ray disc players.[15] It was a short couple of weeks ago that Best Buy announced it had partnered with Netflix to equip its in-house brand of Insignia connected Blu-Ray players with support for Netflix Instant streaming like Sony, LG, and Samsung all had done to their own players.[21] As reported in our earlier story, Best Buy is looking beyond just offering streaming video on HDTVs and Blu-ray players.[29]
The required software will be included on all Web-connected devices sold by Best Buy, including flat-screen TVs, Blu-ray players and computers.[39]
Now, Best Buy is following the lead of companies like TiVo, LG, and, Pioneer by partnering with Sonic Solutions to include CinemaNow streaming in more devices.[21] Best Buy has signed a multiyear pact to license Roxio CinemaNow, and under the terms of that agreement, the company has been granted permission to purchase an undisclosed number of Sonic Solutions' common stock.[5] Under the terms of a multiyear agreement, Best Buy will license Roxio CinemaNow technology and acquired warrants enabling it to purchase shares of Sonic Solutions common stock.[4] Best Buy said it has entered into a multi-year agreement to license Sonic Solutions' Roxio CinemaNow technology.[26]
According to Sonic Solutions, Roxio CinemaNow includes Hollywood approved DRM, encoding and adaptive delivery technologies, and secure, device-optimized playback of premium entertainment. The company claims that the Roxio CinemaNow "ecosystem" includes PC's, connected TV's, DVR's, and Blu-ray Disc and mobile media players from such companies as Archos, Dell, HP, LG, Microsoft, Nintendo, Pioneer and TiVo.[2] The giant electronics retailer on Tuesday is announcing a partnership with Sonic Solutions ' Roxio CinemaNow service to deliver first-run DVDs streamed online directly to consumers.[15]
NEW YORK (Dow Jones)--Best Buy Co. (BBY) has acquired warrants that will allow it to buy Sonic Solutions (SNIC) common shares, as part of a pact for the electronics retail giant to start selling products carrying the increasingly popular video-on-demand services from the much smaller Sonic.[40] Best Buy, according to the Wall Street Journal, has acquired warrants that will enable it to buy Sonic Solutions' common shares and allow it start selling products carrying the increasingly popular video-on-demand services from the much smaller company.[3]
Best Buy has announced plans to partner with Sonic Solutions to develop its own video on demand service.[41] Video Business reporting that Best Buy has released further details regarding their deal with Sonic Solutions, struck in June.[10] The deal gives Best Buy warrants that will allow it to purchase Sonic Solutions common shares.[41] The agreement also sees Best Buy acquiring warrants enabling it to purchase shares of Sonic Solutions' common stock.[2] At the end of the day, Best Buy will be just another big fish in a shallow pond. The only upside for Best Buy here is that it will be receiving Sonic Solutions warrants for championing its platform. There may be little fundamentally exciting about Sonic Solutions, but its stock has been a 10-bagger since bottoming out in March.[8]
Sonic Solutions executive VP of strategy Mark Ely said Best Buy's store reach and marketing power could help "take Internet video from an early adopter category to more of a mass market phenomenon."[28] Dave Habiger, president and CEO of Sonic Solutions, said Best Buy's market presence will help develop the audience for digital delivery.[32] Best Buy will pay CinemaNow, a unit of Sonic Solutions of Novato, Calif., a fee plus a percentage of revenue.[16]
Best Buy will be taking a stake in Sonic as part of the pact. CinemaNow makes its money with a one-time fee from device-makers who adds its service, and it takes a cut of every video purchase.[19]
The company says CinemaNow will become a standard feature in "connected consumer electronics devices sold throughout U.S. Best Buy retail stores," and online.[21] The software needed to download movies and television shows will be included on all viable electronics sold in Best Buy stores across the country, including televisions, computers, and even mobile phones.[31] Looking to cover some ground on the sagging sales of DVDs and Blu-ray, leading U.S. electronic retailer Best Buy is hoping into the digital download arena.[42] U.S. electronics retailer Best Buy is preparing to enter the digital video distribution business in a big way.[33]
The electronics retailer is setting up a digital delivery service, making it easier to rent and buy movies on the Internet.[39]
The company has partnered with CinemaNow on a new digital service that will allow customers to download movies to any compatible internet-connected device.[42] The company is partnering with CinemaNow, an online video download service that lets users rent and purchase movies and TV shows.[33] CinemaNow's downloadable titles cost between $9.99 and $19.99 and include movies, TV shows, and music videos.[21]
I was waiting for it. I thought it would have been around sooner considering all the touch screen phones and smaller laptops, A service like this should be good as long as they dont charge up the nose for it! Will have to wait and see what it will cost. I think these movie streaming companies should be required to give a certain portion of their profits to the ISPs, so that they can invest in the infrastructure. If this idea takes off, the streaming of HD videos would pretty much jam the internet if this didn't happen. This media war continues, I still rely on ( LoggTV.com ) for TV, Movies and music.[5] Google, Uber Disrupter Above the Crowd "Business disruption," which requires incumbents to abandon core strategies for new ones, is the key premise behind recently successful business movements like Software as a Service, open source architecture, and the so-called "Freemium" Internet model, argues Benchmark Capital's Bill Gurley. Apple Readies Web TV's Killer App MediaMemo et al. It looks like Apple's making yet another and more aggressive go at Web TV, this time by extending its iTunes software with a $30-a-month subscription service. Riding "over the top" of existing infrastructure, the yet-to-be-announced service could potentially rival those.[7] Best Buy's announcement comes at the same time as emerging reports of Apple's interest in an iTunes TV subscription service.[5] The service could strengthen Best Buy's ability to compete with a established online media destinations, including Amazon.com Inc ( AMZN.O ) and Apple Inc's ( AAPL.O ) iTunes store.[4] Best Buy bought digital music service Napster Inc about a year ago in an effort to compete with Apple's dominant iTunes service.[4] When's the last time you bought a download from Best Buy? You may count on the chain for buying an MP3 player, but not for MP3s. It figured it would beef up its digital music reach by acquiring Napster last year.[8] While there a lot of options, the concept still hasn't really caught on to a wide section of the public. Best Buy has actually been offering digital downloads on its website since the beginning of the year, but who actually knew that? I suppose the thinking here is that in a few years DVD will be obsolete so it's better to get your foot in the door now and integrated hardware is the key and one advantage Best Buy has over, say, Amazon.[42]
The move follows a 13% slump in DVD sales for the year that has had the company casting about for a new revenue stream. It plans to experiment with different models, from purchase to rental to subscription, and thinks it can bring a new take to what is "certainly a very crowded space," a Best Buy exec tells the Los Angeles Times.[37] Best Buy expects to provide access to thousands of new movies, independent films, and older catalog movies, with some new titles available on the same day as the comparable DVD goes on sale.[4] What'''s even better is that some of the new titles will be available on the very same day the official DVDs are launched. That means you won'''t have to go to the mall searching your favorite movies anymore since your TV will already be able to offer them to you. Are you excited about all that? It gets even better! Once you buy a DVD then you will be able to play it on any connected device in your home without having to worry for any extra taxes. We have no pricing details at this point as the on-demand offer won'''t be available immediately.[12]
I'm not a Cable TV or Blockbuster prisoner. Does Best Buy make its own brand of TV's, players, etc.? I don't live in the U.S., and was just wondering, since I never heard of Best Buy as a product brand. It seems to be implied in the news item. I'm not sure if they're starting to limit that business or not because I don't see them advertising it as much as they used to.[5] How important are on-demand services for your? Would you buy a certain product for your home theater only if said product will come with support for on-demand entertainment? Well starting today Best Buy has something totally new for you.[12] "With Best Buy's focus, we expect on-demand entertainment to quickly grow into a mass market activity, with digital sell-through and rental becoming a significant new revenue stream for content owners."[32] Best Buy's entry into the digital download scene marks an "important evolution in the way we watch movies," said Russ Crupnick, vice president and senior industry analyst at NPD Entertainment. "Movie collecting has stalled, and maybe peaked," he said.[11] "Digital is developing as a channel and we're forecasting that by 2012 it will be a significant, double-digit percentage" of the revenue generated by movies watched at home, said Ryan Pirozzi, director of digital media for Best Buy.[16] "Digital is developing as a channel and we're forecasting that by 2012 it will be a significant, double-digit percentage," said Ryan Pirozzi, director of digital media for Best Buy. "This is certainly a very crowded space and we're going to work to translate our customer insights into a more compelling service than those out there currently," Pirozzi said.[23] During the company's second quarter earnings call Sept. 15, Best Buy chief executive officer Brian Dunn hinted at a major move into digital, saying, "We'll see more digitally-connected services.[28] Video Business quoted a second-quarter earnings call during which Best Buy CEO Brian Dunn said, "We'll see more digitally connected services.[10]
SAN FRANCISCO ( TheStreet ) -- Best Buy ( BBY Quote ) plans to enter the movie rental business, allowing consumers to stream films over the Internet.[43] Best Buy can do what the want to try and make up for their lagging DVD sales, but I don't think that VOD is going to help them any. To be quite frank, Best Buy has become an expensive place to shop and they refuse to. Best Buy can do what the want to try and make up for their lagging DVD sales, but I don't think that VOD is going to help them any. To be quite frank, Best Buy has become an expensive place to shop and they refuse to compete with other internet based businesses online or in the store. Lets take for instance this weeks big Blu-ray/DVD releases.[42] It'''s easy to lose a DVD ''' and it might be hard to get one back after you'''ve loaned it to a friend. It often make less sense to buy a DVD than to rent one ''' how many times are you really going to watch '''Gone with the Wind''' on DVD, or even the first six episodes of "Seinfeld"? Repeated trips to the DVD rental store can be a bit of a hassle, as well. Now, the emergence of multimedia niceties such as Windows 7'''s Internet TV and home networking standards such as DLNA 1.5 are starting to make streaming video all the more appealing.[35] Everywhere I see, there is more streaming video then ever, if this keeps up, soon all the bandwidth of the Internet will be used for this purpose only and then the Internet will literally come to a stand still or run at snails pace, people what are you doing, we don't have this much infrastructure and I don't see plans for the future as well. Have you ever considered that streaming videos only play when being streamed, so if you even buy a video through this service, you will be only able to see it once, or maybe even twice but not more than that. I remember seeing something last year that said that the internet was close to it's total amount of growth and that bandwidth was going to be a real issue from an infrastructure standpoint.[5]
Best Buy hopes to offer the as-yet-unnamed service before the end of the year.[24] Just in case you'''re not particularly fond of CinemaNow then you should know that Best Buy also has various deals with Netflix, TiVo and Napster planned for next year.[12] Best Buy said it has agreed to a multiyear deal with Roxio CinemaNow technology.[41]
The move should give Best Buy and CinemaNow a much stronger foothold in the digital media space.[33] Best Buy will have an easel to paint with. It entered into a strategic alliance with TiVo (Nasdaq: TIVO ) this summer, and it's easy to see Best Buy including a few free CinemaNow digital rentals with every TiVo purchased.[8]
In July, TiVo announced that it was teaming up with Best Buy to offer TiVo-brand digital video recorders that integrate Best Buy content. Mixx It Digg It More.[6] Best Buy hopes to capture some of the burgeoning on-demand digital content market.[32]
Now take that paper, fold it into an airplane, and throw it out the window. There are a few things wrong with getting excited about this move. For starters, Best Buy knows how to run a superstore chain, but it's been the Charlie Brown of digital delivery. It's been selling digital music for a couple of years now.[8] Is Best Buy's digital music storefront or Napster any more popular today than it was a year ago? I don't think so.[8]
Under the terms of the warrant, which vests over a two year period, Best Buy is entitled to purchase Sonic's common stock at $4.98 per share (the closing price on the date of the warrant'''s issuance)."[30] Shares of Sonic leapt 16% to $6.08 in recent trading, though Best Buy made no other comments on acquiring the shares other than saying it has the warrants.[40]
One of the more interesting tidbits is that Best Buy has acquired warrants that will allow it to buy an undisclosed amount of Sonic's common stock, as part of the multi-year deal.[30]
Sonic Solutions shares jumped 16.6 percent on Tuesday after the announcement of the deal, which could accelerate the usage of the CinemaNow system for distributing video and media to electronic devices.[4] CinemaNow, a service of California-based Sonic Solutions, has licensing deals with all the major movie studios.[11]
Sonic Solutions' president Dave Habiger said prices will be competitive with Netflix, RedBox and digital on-demand services offered by cable providers. Those prices vary from $1 per movie to monthly subscriptions for unlimited movies.[11]
Sonic has invested heavily in becoming a cloud-based service as the back end for the secure digital distribution of movies. "This whole industry is moving away from discs to electronic distribution directly to consumer devices," said David Habiger, chief executive of Sonic.[15]
The bulk of that comes from on-demand movies from cable services, but a growing number of consumers are streaming video movies from the Web through Netflix, Amazon.com and Apple's iTunes.[11] The market has recently become very competitive, however, with rival online movie services from Amazon.com Inc., Netflix Inc. and Apple Inc.' s iTunes Store.[16] For the same reason, the company has acquired the music service Napster and tied up with Blockbuster and Netflix, the online movie rental services.[17] The company did not give the name of the service, or when it would launch. CinemaNow, an online movie pioneer, has provided similar services to others, such as computer maker Dell Inc ( DELL.O ) and movie rental company Blockbuster Inc ( BBI.N ).[4]
The CinemaNow service lets users rent or purchase movies, TV episodes and other video content a la carte.[27] Monday, Sonic Solutions announced that a similar agreement with Blockbuster Video had exceeded the companies' initial launch expectations for content through TiVo DVRs and Samsung TVs and Blu-ray players.[32] Best Buy is also moving into a crowded field where even companies that have video birthrights -- Blockbuster (NYSE: BBI ) and Apple (Nasdaq: AAPL ) -- have only had moderate success.[8] Best Buy is currently in negotiations with all the major electronics companies to include the service on any product sold at a Best Buy.[23] Best Buy said it also plans to eventually expand the service to include TV shows.[24] You'''ll definitely have access to various on-demand services in 2010 and all you need to do is get some of your connected devices from Best Buy.[12] The movie streaming facility will be offered on almost all the devices being sold by Best Buy in more than 1000 stores in the nation.[17] Best Buy will begin selling devices with CinemaNow in-store, including DVD drives and computers.[22] The multiyear agreement allows Best Buy to license and deploy the CinemaNow platform embedded as a standard feature on connected devices sold by Best Buy.[32]
Still we still have an example of Best Buy dragging the device makers to the new frontier. Which they should have been exploring by themselves--the idiots.[25] Best Buy plans to load software for it on electronic devices from manufacturers that include Samsung, Sony, Panasonic and Toshiba.[16] What gives Best Buy an edge is that it will be pre-loading the software onto devices from Samsung, Sony, Panasonic and Toshiba.[42]
By launching a storefront on CE devices, Best Buy aims to compete with Amazon.com Inc. (Nasdaq: AMZN) and VUDU Inc., which have introduced similar offerings.[29]
Best Buy sells a lot of DVDs, but it is taking another step to get ready for the day when that business shifts online.[15] The service will be branded under the Best Buy name, with the retailer handling all marketing and promotion.[28] The announcement comes about four months after Contentinople first reported Best Buy's plans for the service.[29]
In the state I live in there is no tax and if I spend more than 25 I can get free shipping. With this option why would I pay 24.99 or more (plus tax) for the same release, especially if I buy two or more movies at a time and get free shipping. Basically Best Buy is losing to the smart shopper that refuses to pay more in this economy.[42] Once available, consumers will be able to buy or view more than 20,000 of CinemaNow's movie and television titles.[11] Legal movie downloads have been available for about a decade, but the business has been impeded by high prices and limitations on availability and consumers' ability to play video on different devices, which have made DVDs and illegal downloads more attractive.[16] CinemaNow's business model differs from Netflix Instant, in that it is not subscription-based. It offers titles in pay-per-view for $2.99-$3.99 per 24-hour viewing window, and it lets users download movies to keep for unlimited viewing on up to three devices.[21]
Retailer is partnering with CinemaNow to deliver movie downloads to TVs, PCs, media players, and phones.[36] There's a good chance it will come with the option to purchase or rent movies and TV shows. It's just another one of the many ways consumers can begin digital downloads of movies and TV including Xbox Live, Amazon and iTunes.[42] Movie purchases typically run between $10 and $20, while TV shows are $1.99 per episode.[33]
The unnamed project hopes to give users buy once, play anywhere privileges: those who buy a DVD in-store will then have access to a CinemaNow-based portal for watching movies both on computers as well as on smartphones and Internet-aware Blu-ray players. [38] I know for me, I've debated whether to get a Blu-ray player, even though prices have dropped to around $100. That's because I prefer the convenience of digitally downloading or streaming shows and music versus buying DVDs or CDs.[13]
The warrants vest over a two-year period and then Best Buy will be able to buy the shares at $4.98." [22] Best Buy is forecasting a double digit growth in digital sales ''' through downloads ''' by 2012.[18] Best Buy has a definite foothold in the electronics market in America, and is actually the largest retailer of electronic goods in the country.[31] The problem I see is that because consumers are so used to getting junk software along with their PC's, they may be inclined to ignore anything Best Buy adds.[33] After spending two hours in Best Buy last week talking to anyone that would talk to someone not actually buying something, I think something is wrong in R&D at the manufacturers. A manager, who is on some committee, went on about how they have to tell companies what to invent because they haven't a clue what is wanted and needed out there.[25]
The retailer is also reportedly in talks to embed the digital storefront in CE devices from companies like Samsung, LG Electronics, Sony, and Vizio.[29] The Age of Consent Consumers may find it intrusive if not downright creepy, but marketers, under immense pressure to meet quarterly goals, depend on behavioral targeting to squeeze digital dollars out of dimes. The question is: Can it be done in such a way that is beneficial to everyone? DOA Q&A: Philip K. Dick At a time when the whole world feels like it's falling apart, who better to talk to than someone who suggested that might be the case? Church & State Can the news business survive once-sacred walls toppling? Work with me on this, because you, the reader, are an integral part of this story. I want you to pick up this magazine.[7]
Jeff Zucker Is Not Going Anywhere Jeff Zucker, CEO and president of NBC Universal, has been trying to turn digital dimes into digital dollars for years. Currently he's delivering tv programs online through Hulu, transforming nbc tv stations into hyper local Web destinations, and selling tv advertising based on the Internet's automated, targeted model. Jonathan Miller Preaches the Agnostic Gospel of the Cloud Jonathan Miller is more determined than ever to crack interactive media's money-making code in his new job as News Corp.' s digital chief. He's got plenty of learning experience to draw from, both as a partner at venture capital firm Fuse Capital and as the chairman and CEO of.[7] Capturing Mom's Holiday Shopping Dollars Moms with older children expect to spend more than last year. This is good news for marketers and brands with. Comcast-NBC Deal: Gaining Few Assets With NBC Name? For weeks, Comcast's message has been clear: It wants TV content to match its distribution. Its real interest seemed.[7]
Though the iTunes's subscription model appears to be just a rumor for the moment; industry scuttlebutt reveals that Apple has been pitching the concept to TV networks. The service would not be tied to a new piece of software but would rather be tied to its existing iTunes software and store, writes MediaBuyerPlanner.[3] The new service is powered by Sonic'''s Roxio CinemaNow, a service that you might be already familiar with already.[12] "Latest device reports are a clear indication that we've found a winning formula in combining our Roxio CinemaNow content delivery platform with one of the most recognizable brands in entertainment," Habiger said in a statement Monday.[32] Roxio CinemaNow also powers broadband video content delivery for Blockbuster.[2]
Blockbuster is all but dead because of the online distribution of video and as stated above there are more and more companies offering streaming and downloading digital content. It seems the information super highway is heading towards a massive traffic jam.[5] Why has the mighty Apple fallen short in digital video after mastering digital music? The biggest knock is that consumer demand for premium streams doesn't seem to be there. More and more Internet-tethered home theater appliances are making digital video possible, but couch potatoes appear perfectly content to stream older titles through Netflix (Nasdaq: NFLX ) at no additional cost or lean on their cable providers for more reliable on-demand viewings. There are too many companies fighting for a market that is smaller than they think.[8] Consumers are getting more ways of finding home entertainment with just a few clicks instead of traveling to a video rental store or waiting for a disc to be delivered through the mail. Apple Inc., Amazon.com Inc. and DVD-by-mail pioneer Netflix Inc. all have been winning over consumers with their own digital delivery systems.[14]
A year in the making, MSN Wednesday is expected to debut a refurbished home page that puts the focus on Bing-powered search, local content, in-line video, and the social networks that are consuming an ever greater share of consumers' digital lives.[7]
Obviously major retailers want to be transitioned," Ralph Schackart, an analyst at William Blair, told the Wall Street Journal. "From Sonic's perspective, what you gain out of this is a grass roots marketing that Sonic doesn't have to fund," he said. "It gets digital content to Middle America, and all those blue shirts explaining how to use it." Sonic has announced its pans to hold a conference call on Tuesday to discuss the new agreement.[41] Bob Doris, founder and chairman at Sonic, said consumers are getting ready for a "wholesale embrace" of digital delivery. He compared it to the transition from CDs to digital music downloads. "All of these transitions have a pattern," he said.[11] Will you use it? Will you be annoyed that your hardware is being pre-installed with software you're not interested in using? Extra Tidbit: For me, the price of fiber optic online services (like FIOS) need to come down before digital downloads become the norm.[42]
CinemaNow, founded in 1999, was endorsed by the Hollywood studios as an alternative to illegally downloaded movies over the Internet, but the service never became popular with consumers.[15] "Blockbuster Inc. also has a deal with CinemaNow that lets people rent movies over the Internet."[13]
Last year, Sonic acquired CinemaNow, an online movie distributor, from a group of investors including Cisco Systems and the movie studio Lionsgate.[15] In June, it first partnered with Sonic, linking to Sonic's CinemaNow web site from Bestbuy.com for movie downloads.[28]
The shares of Sonic Solutions, which acquired CinemaNow late in 2008, jumped 91 cents to $6.15 on Tuesday afternoon on Nasdaq.[4] The service will use technology licensed from Sonic Solutions, which will be installed on televisions, computers,.[7] The Blockbuster On Demand initiative is driving 50 percent higher attach rates than historic figures for CinemaNow-powered devices, according to Sonic Solutions.[32] Neither company said exactly when devices are expected in stores. The partnership is similar to one Sonic struck with Blockbuster earlier this year, which has begun rolling out through devices and stores in the last month.[28]
Sales of DVDs have been declining since 2006. Consumers are choosier where they spend money, while renting has become more convenient through RedBox vending machines at grocery stores and mail-in rentals through Blockbuster and Netflix.[11] Longtime Fool contributor Rick Munarriz can watch time fly at a consumer electronics store. He's a gadget geek that way. He owns shares in Netflix and TiVo. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.[8]
In order to get brand new movies from Netflix you have to get it on the physical DVD. In reality, it will be more competitive to pay-per-view from the cable companies. [25] Currently, if you look at the CinemaNow web site, you see most new movies can be bought for $19.99 and rented for $3.99 or $4.99.[25] If the intention is a one time download, there will no doubt be a way to purchase it (like buying a movie for $5 on iTunes that is yours to keep). It seems the information super highway is heading towards a massive traffic jam. Where do you guys get this stuff at? Despite what you've heard, the only reason there are bandwidth 'issues' at all is because your ISP is cheapo and they try to get away with giving you as little as possible for as much as possible.[5] I don't want to stream a movie and have it look like SD or worse quality and if I had to pay the same price as renting it I would just rent the DVD/BluRay and get the better quality. If this idea takes off, the streaming of HD videos would pretty much jam the internet if this didn't happen. Exactly what they should do.[5] With streaming video a compelling new alternative to television and mobile phones far outnumbering personal computers.[7] Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.[4]
The new service will be a Best Buy-branded offering, available starting early next year. "We're going into this business in a big way," Mr. Homeister said.[15]
Q+A: Adam L. Penenberg Adam L. Penenberg is a journalism professor and assistant director of the Business and Economics program at New York University. His latest book, Viral Loop: From Facebook to Twitter, How Today's Smartest Companies Grow Themselves (Hyperion), will be on shelves in October. In the book, he explores trends. Q+A Lloyd Braun Who controls the media, and how (if it changes at all) does this control change? Braun: The consumer controls media.[7] Q+A Douglas Ferguson How will we consume media in five and 10 years' time? Ferguson: When everything is digitized and libraries offer materials, we will have access to anything and everything whenever we choose, at a trivial long-tail price. Q+A Lance Broumand How will get your news in a few years? Broumand: I think it's one page that looks a lot like what the Drudge Report looks like right now.[7] The nyc Wine and Food Festival had taken over half the Meatpacking District for the weekend, putting the focus. Trim Marks Original online video took a beating this year, but the shine hasn't quite worn off yet. Despite a string of high-profile broadband start-up flops earlier in the year, media companies like Alloy Media + Marketing, studios like Generate and Web destinations such as the Sony-owned Crackle continue to.[7]
Companies like Apple'''s iTunes, Netflix, Amazon.com are already offering services.[17] Industry research firm Outsell has partnered with subscription analytics provider Scout Analytics to sell a new subscription service. Simply put: "Clients will be able to use technology to segment their customers," said Mark Upson, president and CEO of Scout Analytics.[7] The company has yet to announce a name for the new service, or specific dates on when it would launch.[41]
The service would be integrated into most devices the electronics chain sells that can be connected to the Internet.[16] Some studios still remain hesitant about providing movies to online-only services like iTunes and often limit the ability to purchase or rent for the first few weeks.[38] CinemaNow will run the back-end technology for the service, as it does for Blockbuster Inc.' s similar offering.[16]
SOURCES
1. Best Buy, CinemaNow Partner on Movie Download Service - PC World
2. Best Buy in Broadband VOD Partnership with Sonic Solutions | InteractiveTV Today
3. Best Buy, iTunes Validate 'Over-the-Top' Model - MarketingVOX
4. UPDATE 2-Best Buy plans movie download service with Sonic | Deals | Mergers & Acquisitions | Reuters
5. Best Buy to offer movie streaming service with various devices - TechSpot News
6. Best Buy to Deliver Streaming Movies via CinemaNow - Reviews by PC Magazine
7. MediaPost Publications - Home of MediaDailyNews, MEDIA and OMMA Magazines
8. Best Buy's Next Mistake (BBY)
9. Digital Silence - Hardware, Software and Technology News
10. Best Buy to Launch Branded Digital Content Service on Connected Devices : Dealerscope
11. Best Buy to offer movie downloads | StarTribune.com
12. Best Buy to Offer On-Demand Entertainment Services [Best Buy & CinemaNow to Offer Content to Connected Devices in 2010] » TFTS Technology, Gadgets & Curiosities
13. Best Buy to let you rent, buy movies online : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis
14. The Associated Press: Best Buy embraces digital delivery of home video
15. Best Buy Prepares for the Post-DVD Era - Bits Blog - NYTimes.com
16. Best Buy launching digital movie service with CinemaNow -- latimes.com
17. Best Buy to launch digital movie service | The Money Times
18. Best Buy (BBY) To Partner With CinemaNow For Digital Delivery | Benzinga.com
19. Best Buy Taps CinemaNow For Video on Demand - BusinessWeek
20. Best Buy signs deal for downloadable movies | Duniyalive.com
21. CinemaNow streaming movies coming to Best Buy | Tech Gear News - Betanews
22. Best Buy and Sonic sign CinemaNow deal
23. Best Buy To Stream Movies Online » Tech Jackal
24. Best Buy partnering with CinemaNow on movie download service - FierceOnlineVideo
25. Unthinkable - Best Buy forces device makers to offer CinemaNow with classic tail-wagging-dog strategy
26. Best Buy To Launch Online Movie Service | WebProNews
27. Best Buy to Launch CinemaNow-Powered Download Service | Digital Media Wire
28. Best Buy makes move into digital - Entertainment News, Film News, Media - Variety
29. Contentinople - Ryan Lawler - Best Buy Confirms Digital Content Plans
30. Updated: Best Buy Gets Sonic Stake As Part Of New Streaming Deal With CinemaNow | paidContent
31. Best Buy Unveils Plan to Launch Digital Movie Download Service : dBTechno
32. Best Buy Launches Movie Download Service With CinemaNow - Retail - IT Channel News by CRN
33. Best Buy + CinemaNow = sitting in a tree
34. Best Buy enters the online video download business - Minneapolis / St. Paul News - City Pages - The Blotter
35. Best Buy Movie Downloads: Is the Death of the DVD Nigh? - PC World
36. Best Buy Does Movie Downloads - PC World
37. Best Buy Noses Into Online Movie Market - Business News Summaries | Newser
38. Best Buy to let users stream purchased DVD movies | Electronista
39. TechBytes: Best Buy Movie Service - ABC News
40. Best Buy, Sonic Solutions Sign Pact For On-Demand Movies - WSJ.com
41. Best Buy, Sonic Set Up For Movie On Demand Service - Technology News - redOrbit
42. Best Buy VOD?
43. Best Buy to Stream Movies Online | Top Business News | Financial Articles & Investing News | TheStreet.com
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