Best Buy has partnered with online provider CinemaNow to develop a movie downloading service that will come preloaded on the bulk of its Internet-capable electronics. The move follows a 13% slump in DVD sales for the year that has had the company casting about for a new revenue stream. It plans to experiment with different models, from purchase to rental to subscription, and thinks it can bring a new take to what is "certainly a very crowded space," a Best Buy exec tells the Los Angeles Times.
"Digital is developing as a channel. We're going to work to translate our customer insights into a more compelling service than those out there currently," he adds. Of particular use are the company’s retail stores, which can be used to market the as-yet-unnamed service. Best Buy had previously offered some CinemaNow properties on its website, but the new effort will be a branded product with the retailer deciding on design and pricing. (More Best Buy stories.)
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