By the end of May, Best Buy will be offering movies for sale and rental over the Internet under the CinemaNow brand. This puts it on direct collision course with the likes of Apple iTunes, Amazon, and Wal-Mart.
From Physical To Digital
There’s a definite shift away from physical formats such as CDs and DVDs towards digital formats such as MP3s and streaming video. It may not be happening overnight, but it’s slowly but surely becoming a reality.
Music is leading the charge thanks to personal media players and smartphones, and the simplicity of downloading digital tracks. However, video isn’t far behind, with both streaming and to-keep downloads increasing in popularity.
Best Buy’s CinemaNow
This week has seen Best Buy join the ranks of those companies offering videos for rental and download. Best Buy is the largest U.S. retailer, and it should be able to use this position in the market to gain customers quickly.
However, in a rather strange decision, Best Buy has decided to use the CinemaNow name for its online video store.
CinemaNow has been around for more than a decade but has failed to take off. Best Buy has partnered with Sonic Solutions and acquired the CinemaNow name for an undisclosed amount of money.
Details, Details
Best Buy will begin by selling videos through LG Blu-ray players before moving on to Samsung televisions. Eventually it hopes to sell to consumers through all the Internet-ready devices sold in its 1,000 stores.
Rentals will cost between $2.99 and $3.99, while downloads will cost between $9.99 and $19.99. Movies will be available on the same day they’re released on DVD and Blu-ray. Some titles will be available in 1080p full-HD.
Chris Homeister, senior vice president of entertainment for Best Buy, said:
“With the introduction of CinemaNow, Best Buy continues our commitment to evolve with our customers as their demand for digital entertainment grows. The convenience, selection and flexibility of the CinemaNow service offers customers more freedom in the way they choose to consume entertainment from Best Buy.”
“This service, which complements our existing suite of digital entertainment brands, will be available to customers in their homes and on-the-go through a broad array of devices and will be brought to life in store with the help of our Blue Shirts and Geek Squad Agents.”
Conclusions
Best Buy is entering a market that already competitive. Can the retailer gain any traction against the likes of iTunes, Amazon, Wal-Mart, YouTube, and Netflix?
