Best Buy to Embed CinemaNow on Most Connected Devices

Posted Thu Nov 5, 2009 at 08:00 AM PST by Mike Attebery

No, we’re not just talking about Dynex or Insignia here, Best Buy announced today that they’ll be embedding the Roxio CinemaNow service into nearly all capable devices sold in their stores, in a variety of brands. Oh, and there’s more.

The move will effect more than just Blu-ray players and HDTVs, as the CinemaNow digital distribution service will be embedded into not only the usual suspects but set-top boxes, personal media players, and even mobile phones. From what we’ve heard, essentially anything that can play video and connect to the internet.

So with a majority of the hardware purchased from Best Buy set to offer up the digital rental and purchasing service CinemaNow, what’s next? And how exactly does this aggressive move towards digital distribution benefit Best Buy?

Best Buy’s Chris Homeister has the answers. “We’re going into this business in a big way,” he states. “The idea is to let consumers pay once for a DVD and then eventually be able to play it on any device.” This would mean, essentially, that a DVD purchase from Best Buy or would translate into digital rights for the same content.

Best Buy hopes that the inclusion of the service and the future availability of same day digital copies will create loyalty to the brand from consumers who tend to be increasingly concerned with bargain hunting.

Of course, an advertising and educational campaign is sure to follow, explaining to consumers exactly what they’re getting and how it benefits them. As Dave Habiger of Sonic Solutions puts it, “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.”

Source: Yahoo News

Tags: High-Def Retailing, Industry Trends, Best Buy (all tags)