Best Buy to launch online video service

NEW YORK, N.Y. and NOVATO, Calif. Best Buy plans to start an online service that allows consumers to buy, rent and download movies and television shows, according to Reuters.

Reuters reported that the system, based on Sonic Solutions' Roxio CinemaNow service, would be built into devices sold at its stores, including television sets, portable media players, computers, mobile phones and other devices from a variety of manufacturers. Under the terms of a multiyear agreement, Best Buy will license Roxio CinemaNow technology and acquired warrants enabling it to purchase shares of Sonic Solutions common stock.

Best Buy expects to provide access to thousands of new movies, independent films, and older catalog movies, with some new titles available on the same day as the comparable DVD goes on sale, according to Reuters. The company did not give the name of the service, or when it would launch.

Sonic Solutions announced that it will host a conference call on Nov. 3 to review details of its multi-year strategic relationship with Best Buy to power on-demand movie and entertainment using Roxio CinemaNow technology.