Best Buy Taps CinemaNow For Video on Demand

Posted by: Cliff Edwards on November 03, 2009

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. Best Buy had already been using CinemaNow for online video downloads.

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.

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.

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.

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Reader Comments

moneyshot

November 3, 2009 01:48 PM

bestbuy sucks

pathea

November 3, 2009 02:09 PM

when and where did this happen?

pathea

November 3, 2009 02:09 PM

when and where did this happen?

Dar

November 3, 2009 02:40 PM

How can Apple be a "threat" to Hollywood when it keep giving Hollywood more ways to distribute their product in a way that generates income (vs. piracy)

Perhaps Hollywood's biggest problem is considering their partners and distributers "threats". (like video tape for example. That sure hurt them.....)

JellyTech

November 4, 2009 04:09 AM

This media war continues. I still rely on ( LoggTV.com ) for movies and music. I wont pay for downloads or subscription type service.

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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