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SMALL BUSINESS
CORRECTING and REPLACING 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
Business Wire
Reissuing release to remove fifth graph, starting with "Best Buy is in a
great position" through "exciting new consumer offerings."
The corrected release reads:
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
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.
Forward-Looking Statements
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.
Sonic, the Sonic logo, Sonic Solutions, Roxio, the Roxio logo,
Hollywood to Home, and CinemaNow, are trademarks or registered
trademarks owned by Sonic Solutions in the United States and/or other
countries.
All other company or product names are trademarks of
their respective owners and, in some cases, are used by Sonic Solutions
under license. Specifications, pricing and delivery schedules are
subject to change without notice.
Copyright Business Wire 2009
2009-11-03 07:46:00
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