Best Buy Brings On-Demand Entertainment to Its Customers Through a Broad Range of Consumer Electronics
Best Buy Forms Strategic Relationship with Sonic Solutions to Offer Digital Content Delivery Powered by Roxio CinemaNow as a Standard Feature on Connected CE Devices
Minneapolis, MN (November 3, 2009) - Best Buy Co., Inc (NYSE: BBY) and Sonic Solutions (NASDAQ: SNIC) today announced a strategic relationship that will result in a new Best Buy customer offering in its growing line-up of digital entertainment products. The new on-demand movie and entertainment service will be powered by Sonic's Roxio CinemaNow™ and will allow consumers to have access to buy or rent a vast library of premium content.
To power this offering, Best Buy has entered into a multi-year agreement in which Best Buy plans to license and deploy Sonic's Roxio CinemaNow™ technology and services platform to make on-demand digital content delivery a standard feature on connected consumer electronics devices sold throughout U.S. Best Buy retail stores and BestBuy.com. Under the terms of the agreement, Best Buy acquired warrants enabling it to purchase shares of Sonic Solutions common stock.
Best Buy, one of the largest consumer electronics retailers in the world, has a strong track record of bringing innovative technologies to a broad audience through its consumer-focused marketing, education, and Geek Squad services. To foster the consumer appetite for obtaining on-demand premium content electronically, Best Buy intends to embed the Roxio CinemaNow technology on a wide array of devices - web-connected television sets, portable media players, PCs, Blu-ray Disc players, set-top boxes, and mobile phones - from a variety of manufacturers. Best Buy expects to undertake a marketing program to educate consumers about the increased convenience, flexibility, and choice digital content delivery affords.
With the new Best Buy service, consumers will have access to buy or rent an extensive library of premium content including new movies, TV shows, independent films, and older catalog movies, which they will be able to access on devices in the broad ecosystem. It is anticipated that new titles will often be available on the same day they become available on DVDs in retail outlets. Together with their Studio partners, Best Buy and Sonic plan to also collaborate on new service and content offerings, including those that leverage digital copies to bridge physical disc sales and electronic sell through.
"Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," said Brian Dunn, CEO of Best Buy. "It also enables us to make deeper and more meaningful connections with our customers and expand our relationships with content owners and hardware vendors to create compelling new home entertainment solutions."
"With Best Buy's ability to drive in-store promotion and education, consumers will come to quickly understand and appreciate the convenience, flexibility, and control that digitally-delivered video entertainment affords them," said Dave Habiger, president and CEO, Sonic Solutions. "With Best Buy's focus, we expect on-demand entertainment to quickly grow into a mass market activity, with digital sell-through and rental becoming a significant new revenue stream for content owners."
Roxio CinemaNow includes Hollywood-approved digital rights management, encoding and adaptive delivery technologies, and secure device-optimized playback of premium entertainment. Roxio CinemaNow's cloud-based media services power devices which consumers can use to seamlessly enjoy video entertainment anytime and anywhere across the broadest range of devices. The Roxio CinemaNow ecosystem includes PCs, connected TVs, set top DVRs, Blu-ray Disc and mobile media players from leading manufacturers such as Archos, Dell, HP, LG, Microsoft, Nintendo, Pioneer and TiVo and is powering internet movie delivery for Blockbuster.
About Best Buy
With operations in the United States, Canada, Europe, China and Mexico, Best Buy is a multinational retailer of technology and entertainment products and services with a commitment to growth and innovation. The Best Buy family of brands and partnerships collectively generates more than $45 billion in annual revenue and includes brands such as Best Buy; Audiovisions; The Carphone Warehouse; Future Shop; Geek Squad, Jiangsu Five Star; Magnolia Audio Video; Napster; Pacific Sales; The Phone House; and Speakeasy. Approximately 155,000 employees apply their talents to help bring the benefits of these brands to life for customers through retail locations, multiple call centers and Web sites, in-home solutions, product delivery and activities in our communities. Community partnership is central to the way we do business at Best Buy. In fiscal 2009, we donated a combined $33.4 million to improve the vitality of the communities where our employees and customers live and work. For more information about Best Buy, visit www.bestbuy.com.
About Sonic Solutions
Sonic Solutions® (NASDAQ: SNIC) is powering the digital media ecosystem through its complete range of Hollywood to Home™ applications, services, and technologies. Sonic's Roxio® products enable consumers to easily manage and enjoy personal digital media content and, through Roxio CinemaNow™, access premium Hollywood entertainment on a broad range of connected devices. A wide array of leading technology firms, professionals, and developers rely on Sonic to bring innovative digital media functionality to next-generation devices and platforms. Sonic Solutions is headquartered in Marin County, California.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the future business and growth strategies of Roxio CinemaNow and Best Buy, future digital services from Best Buy and Roxio CinemaNow, future marketing and promotion activities of Roxio CinemaNow and Best Buy and all such statements are based upon current expectations, including the launch, distribution, and market acceptance of Roxio CinemaNow products and services. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," "plan," "seek", or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Risk Factors" in each company's public reports filed with the Securities and Exchange Commission, including each company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Each company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Each company disclaims any obligation to update these forward-looking statements.