Best Buy to launch movie download service

17:02, November 03, 2009      

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Best Buy, one of the biggest U.S. sellers of DVDs, is expected to launch its own movie download service on Tuesday for consumer electronics sold in its stores.

Best Buy, based in Richfield, Minn., is partnering with online video provider CinemaNow to create the movie downloading service. CinemaNow will run the back-end technology for the service, as it does for Blockbuster Inc.'s similar offering. Best Buy will handle design and pricing.

The service would be integrated into most devices the electronics retailer sells that can be connected to the Internet, including televisions, DVD players, computers and phones.

Making online movie distribution simpler for consumers will be a top priority for the Best Buy service, said Ryan Pirozzi, director of digital media for Best Buy.

"Digital is developing as a channel and we're forecasting that by 2012 it will be a significant, double-digit percentage" of the revenue generated by movies watched at home, said Ryan Pirozzi.

The company plans to experiment with numerous business models including purchases, rentals, subscriptions and advertiser support. It also will emphasize the ability to watch movies on televisions as well as computers and mobile devices.

The new movie service has not yet been named. Best Buy plans to load software for it on electronic devices from manufacturers that include Samsung, Sony, Panasonic and Toshiba.

Facing an industry decline in sales of physical media such as DVDs and CDs, Best Buy has been making an aggressive push into digital delivery. Last year the company acquired online music service Napster for 121 million U.S. dollars.


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