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Thursday, November 20, 2008
Sonic to Acquire CinemaNow

Sonic Solutions has agreed to to acquire CinemaNow, a privately held online entertainment provider.

CinemaNow is at the forefront of digital video distribution, offering over 6,000 high-quality Hollywood movies, TV shows and music videos to users across multiple platforms. The company has relationships with more than 250 content providers, including all major Hollywood studios, and supplies premium entertainment services to a host of PC and consumer electronics device manufacturers such as Dell, HP, Samsung, TiVo, DivX, and ARCHOS.

Sonic and CinemaNow recently announced a collaboration to enable the download and burn of DVD movies by integrating CinemaNow?s content delivery system into new Qflix DVD drives. Qflix drives have recently become available from a number of companies including Dell, Pioneer and Plextor. CinemaNow will combine with Sonic?s Qflix team to form a new Premium Content Group under the direction of Mark Ely, Sonic?s EVP of Strategy. The group will focus on increasing the placement of CinemaNow?s storefront on PCs and consumer electronics devices, and expanding the adoption of the Qflix technology platform.

"With broadband-connected consumer electronics hitting the market in ever greater numbers, there is a growing need for a service that gives consumers one-click access to premium entertainment on any device in the digital home," said David Cook, president and COO, CinemaNow. "The combination of CinemaNow?s content and embedded device strategy with Sonic?s technical prowess and broad PC and CE distribution promises to fulfill CinemaNow?s original mission ? giving consumers easy access to the best of Hollywood from their PCs, TVs, mobile phones, or anywhere in their digital ecosystems."

Sonic has deep ties to the entertainment industry being a provider of professional software systems used in the creation of Hollywood titles on DVD and Blu-ray Disc. Sonic?s technology solutions and Roxio applications power the management and playback of Hollywood content on PCs and CE devices ranging from set-top DVD players and game consoles, to in-car entertainment systems and portable media players. CinemaNow?s content libraries and delivery systems will enable Sonic?s product portfolio to span the entire premium entertainment supply chain - from creation through distribution and consumption.

The acquisition is expected to close shortly.

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