Best Buy to launch branded movie download service

Best Buy on Tuesday is expected to announce its own movie download service for consumer electronics sold in its stores.

The retailer will soon roll out a movie download service in partnership with Roxio CinemaNow.

(Credit: Best Buy)

Though it doesn't have a name yet--and probably won't until next week at the earliest--Best Buy says the service will be up and running sometime in the fourth quarter, which could mean anytime between now and the end of the year. The retailer is licensing the software and infrastructure from Sonic Solutions' Roxio CinemaNow service, which has more than 20,000 film titles, mostly new releases, available via its on-demand service.

The software will be available on Best Buy's Insignia brand of TVs and Blu-ray players, but the retailer is talking to other, bigger name consumer electronics makers about also including the service on its devices.

"We want to make sure it's difficult to walk out of a Best Buy store without a device that has our movie technology embedded on it," said Ryan Pirozzi, director of digital video for Best Buy.

CinemaNow content is already available on a variety of devices, and is capable of playback on Mac, PC, and Android platforms, including Hewlett-Packard and Dell laptops as well as LG Blu-ray players. But Best Buy wants more so that it can sell the idea that when you rent or buy a movie through this service, you'd be able to transfer the content to any other device you buy in the store.

It's part of Best Buy's strategy to not just sell hardware to customers, which have increasingly small profit margins, but services that get them online and connected to a variety of entertainment sources after they've taken the device home.

It's the same strategy that led the retailer to purchase the music service Napster, as well as partner with Blockbuster and Netflix. When asked if the yet-to-be-named movie download service would negatively affect its current tie-ups with Blockbuster or Netflix, Pirozzi said it's all about giving consumers a choice.

"We own the Napster brand, but we still carry iTunes and eMusic," he said. "The way we do that for music, we'll do the same with video."

There's also an advantage of having devices with CinemaNow in combination with Blockbuster OnDemand or Netflix Watch Instantly--CinemaNow is almost all new releases, while the other two have some older catalog selections. And they're different: movies rented with CinemaNow don't require a subscription; titles can be purchased or rented a la carte.

Best Buy also plans to eventually expand the service to include TV shows.

[gerrrg]

Yet another DRM-controlled pathway to strangle end users, and at a higher price than DVD subscription.

Here's a hint to would-be competitors to Netflix: GO CHEAPER.

[spokaneguy28]

Its a good start with digital media but people will want to be able to transfer media to multiple devices accross multiple platforms. If I buy a digital movie I want to be able to download incase my hard drive goes bust. Maybe some kind of online digital license site to show and store all the titles you own digitally. If I buy from best buy or say amazon it should still show up on this third party site and allow me to re download or stream. Blu-Ray has no chance in this digital world.

[NervClaX]

Disney is coming out with an online license system like the one you describe. We just don' t know who's signed on yet, but with Disney behind it, it could do well. I know I'd like a license to all their animated classics so my son can watch them whenever and wherever he wants.

[AppleSuxLeo]

Cupertino , we have a (another) PROBLEM !

[ofmyony]

These pay per download services are only a temporary bridge until we get subscription streaming services that include new release titles. Download services work for music but they will never work for downloads, the value is in subscription not in downloads.

I am willing to subscribe to a streaming service that includes new releases, I am not interested in a download service for movies.

[ofmyony]

Correction
never work for movies, when is Cnet going to edit my work, darn

[TelexView]

I dont have cable and I still rely on ( LoggTV .com ) good movies and music. Sorry, I wont pay for TV or Downloads.

[abcd9009]

Yet another player in the market which nobody cares. It doesn't matter how many players are in it for Video Ondemand or download. It will NEVER work because of the Hollywood Execs who just doesn't want to accept the changing dynamics of the 21st Century. They just want to live in the old world where they can rip off consumers and the consumers don't have any choice.
Well guess what... welcome to the bittorrent age where everything is FREE!... maybe illegal but still FREE!

People wouldn't want to pirate movies or TV shows if MPAA would remove this restriction on region specific licensing. Think of how everyone would be willing to watch TV or movies on Hulu if it was available worldwide as compared to right now only in the US not because the technology doesn't permit but because Hollywood Execs want separate licensing for every region. it would make more sense if they just license per person which means regardless of where you live, Hulu can easily keep track of how many people are watching and pay accordingly.
But it seems MPAA doesn't get it so keep fighting on piracy... you will NEVER win.

[gsmiller88]

I can already see the CNET headline two years from now:

Best Buy calls it bust, Closes movie download service