Sonic Solutions said today that its movie services will be available on consumer electronics gear sold at Sears and Kmart stores.
Novato, Calif.-based Sonic provides the RoxioNow platform, which can deliver digital movies over Internet connections to home devices such as PCs, TVs, Blu-ray players and mobile phones. In a multi-year deal with Sears Holdings, owner of 3,000 Sears and Kmart stores, Sonic will offer movies and TV shows for rent or purchase.
The new services are expected to launch later this year and will be broadly promoted at retail stores. Mark Ely, executive vice president at Sonic, said in an interview that the partners will each take their share of movie sales, with some money going to Sonic, the gear makers, and to the retailers.
The deal lets retailers partake in the digital distribution market, as retailers are still own prime relationships with consumers and can thus create a lot of traffic for the online video companies. That’s why Sonic is pursuing deals with retailers, Ely said. Earlier this year, Sonic announced a relationship with the Best Buy store chain, and Sonic provides the movie delivery service for Blockbuster Video.
The retailers will try to draw attention to the movie services, thereby upselling consumers to new forms of entertainment they might not otherwise purchase. David Habiger, chief executive of Sonic, said that the deal with mass market retailers such as Sears shows that digital movie delivery has become mainstream. The benefit for consumers, who are no longer going to going to video stores, is the ability to instantly watch movies in their own homes.
In June, Sonic agreed to buy digital media firm DivX for $323 million.