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Tuesday, November 03, 2009
Best Buy Brings On-Demand Entertainment to Its Customers


Best Buy announced today a new on-demand movie and entertainment service will be powered by Sonic's Roxio CinemaNow and will allow consumers to have access to buy or rent movies.

To power this offering, Best Buy has entered into a multi-year agreement in which Best Buy plans to license and deploy Sonic's Roxio CinemaNow technology and services platform to make on-demand digital content delivery a standard feature on connected consumer electronics devices sold throughout U.S. Best Buy retail stores and BestBuy.com.

Under the terms of the agreement, Best Buy acquired warrants enabling it to purchase shares of Sonic Solutions common stock.

Best Buy, one of the largest consumer electronics retailers in the world, intends to embed the Roxio CinemaNow technology on a wide array of devices - web-connected television sets, portable media players, PCs, Blu-ray Disc players, set-top boxes, and mobile phones - from a variety of manufacturers. Best Buy expects to undertake a marketing program to educate consumers about the increased convenience, flexibility, and choice digital content delivery affords.

With the new Best Buy service, consumers will have access to buy or rent 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.

The company did not give the name of the service, or when it would launch.

The service could compete with a number of established online media destinations including Amazon.com, and Apple's iTunes store.

Roxio CinemaNow includes Hollywood-approved digital rights management, encoding and adaptive delivery technologies, and secure device-optimized playback of premium entertainment. Roxio CinemaNow's cloud-based media services power devices which consumers can use to enjoy video entertainment anytime and anywhere across the broadest range of devices. The Roxio CinemaNow ecosystem includes PCs, connected TVs, set top DVRs, Blu-ray Disc and mobile media players from leading manufacturers such as Archos, Dell, HP, LG, Microsoft, Nintendo, Pioneer and TiVo and is powering internet movie delivery for Blockbuster.


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