Best Buy launches its own movie download store
Filed under: Technology, Netflix, Apple, Amazon.com, Inc.
Best Buy (BBY) wants to join the legion of other firms with branded movie download services, although it is not clear why. A number of media sources say that the program will be announced on November 3rd, and will start operating within a few weeks.
The electronics retailer is turning to Sonic Solutions' Roxio CinemaNow operation to provide the titles. CinemaNow is one of the original providers of online films and has 20,000 available titles, although the company was never successful. Software embedded in Best Buy's TVs and other consumer electronics products will enable the service to work.
Industry experts say that Best Buy hopes that the move into online movies will counter the chain's drop in DVD sales, which have been a significant source of income.
The question remains as to how Best Buy plans to compete in a field that is already dominated by Apple (AAPL), Amazon (AMZN), and NetFlix (NFLX). Perhaps the most significant competitor in internet movie downloads, however, is the digital set-top box that sits in almost every living room and delivers video on demand from the same cable companies and telecom firms that bring TV and broadband to tens of millions of homes.
Best Buy executives probably won't ever mention that one of the reasons that they are willing to risk starting their own download service is the low cost of entry -- particularly because they are using the existing CinamaNow platform. But that does not guarantee that the program will be a success.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
11-03-2009 @ 6:46AM
Chris Adamson said...
Nothing new here. Another service that uses Microsoft DRM and supports only Windows and a handful of devices that few people own: no iPods, iPhones, Android phones, Wiis, XBoxes, PS3s, or PSPs are supported... recent TiVos are the only non-joke device listed on the CinemaNow "Devices" page. I mean seriously, *Archos*?
For years, we've endured hype about these media services (music rental, movie downloads) that are tied to the Microsoft DRM standards, and they *always* fail. They don't support the devices people actually own, and many of those who watch on computers are already using BitTorrent and RapidShare and won't actually pay for media. Best Buy's clout can't change any of that.
Sounds like another sad little bucket of fail.
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11-04-2009 @ 11:13AM
adam said...
@chris
Best buy recently bought Napster and actually fixed the problem you site with not working with devices people own. With napster not only does all the music work with ipods, non ipod mp3 players, AND cell phones(usually cheaper than itunes too), it also integrates with the music software of your choice. When you download a song on napster it actually puts it into itunes and can send it straight to your ipod too.
Best Buy used to partner with rhapsody but realized it could actually make a better product if they just owned the service. Will be interesting to see how Best Buy uses cinemanow. Is this just another rhapsody or will best buy actually try and make something unique that is designed to work WITH itunes and not compete against it.
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