Best Buy has made good on its promise to offer a digital video service that will give its customers same-day access to new-release movies and TV shows. On Tuesday, the electronics retailer rolled out its CinemaNow service on some models of the Blu-ray Disc players and HDTVs it sells. The service is also available on most PCs.
For now, Best Buy is focusing on LG Electronics’ brand of Blu-ray Disc players and home theater systems. But the company also plans to launch the content-download service on a range of devices from other manufacturers later this year.
A Digital Evolution
Chris Homeister, senior vice president of entertainment for Best Buy, pointed to the CinemaNow rollout as proof that the company is committed to evolving with its customers as the demand for digital content grows. But analysts aren’t so sure most consumers are looking for an alternative to the already-popular services they are using.
Phil Leigh, a senior analyst at Inside Digital Media, thinks Best Buy will soon discover that the CinemaNow brand is weak in comparison to Amazon Video on Demand, Netflix and iTunes. Indeed, the brand is not as well known as the trio of market changers Leigh listed.
“The advantage CinemaNow has against Netflix is that there will be no subscription required,” Leigh said. “But I am not sure that’s a significant advantage, because with the subscription people are constantly reminded of the availability of the service.”
Best Buy’s Big Bet
Best Buy almost has to make a move, since it owns the legal rights to the trademark CinemaNow. CinemaNow in its current form is the offspring of a strategic partnership between Sonic Solutions and Best Buy. The service is powered by RoxioNow technology.
Best Buy plans to use the brand name to market digital movies and TV shows to consumers that want to buy…