Best Buy, Sonic Team for Content Download Service

RICHFIELD: Retailer Best Buy is launching a service allowing consumers to rent or buy movies and TV shows from their electronics devices, to be powered by Sonic Solutions’ Roxio CinemaNow platform.

Under the terms of the agreement, Best Buy acquired warrants enabling it to purchase shares of Sonic Solutions common stock. Best Buy will license and deploy the Roxio CinemaNow technology on consumer electronics devices from a variety of manufacturers sold throughout U.S. Best Buy retail stores and BestBuy.com, including web-connected television sets, portable media players, PCs, Blu-ray Disc players, set-top boxes and mobile phones. The slate will include new movies, TV shows and catalogue titles. It is anticipated that new titles will often be available on the same day they become available on DVD in retail outlets.

"Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," said Brian Dunn, the 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."

"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," added Dave Habiger, the president and CEO of Sonic Solutions. "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."