Best Buy Noses Into Online Movie Market

Streaming service will come pre-loaded on gadgets
By Harry Kimball,  Newser Staff
Posted Nov 3, 2009 10:11 AM CST
A Best Buy store.   (AP Photo)

(Newser) – 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.