Best Buy Storefront to Land on Samsung, LG HDTVs - AVS Forum
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post #1 of 8 Old 07-15-2009, 05:09 PM - Thread Starter
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Consumer electronics (CE) manufacturers LG Electronics Inc. (London: LGLD; Korea: 6657.KS) and Samsung Corp. will be rolling out high-definition TVs (HDTVs) and other devices embedded with a Best Buy-branded digital storefront by the end of the year, sources say.

Last week, Best Buy announced a strategic partnership with TiVo Inc. (Nasdaq: TIVO) that opens the door for the big box retailer to sell digital content through HDTVs and other devices via its in-house brands, Insignia and Dynex.

Since then, Contentinople has learned that, not only will a Best Buy store be supported by its own brands, but that multiple big-name CE manufacturers are lining up to embed the digital storefront in their own devices. Chief among those will be LG and Samsung, according to sources. The store is expected to be in CE devices by fall, which would allow Best Buy and participating manufacturers to start selling them this holiday season.

Best Buy, LG, and Samsung already share a common partnership with Sonic Solutions (Nasdaq: SNIC), which would provide the backend distribution technology for the store. Sonic's CinemaNow storefront, which would be white-labeled for Best Buy, is already available on some LG Blu-ray players.

Sonic has also white-labeled its distribution technology and content to be used for a Blockbuster Inc. -branded digital storefront that will soon be available on Samsung HDTVs and other CE devices, as well as on TiVo Inc. (Nasdaq: TIVO) digital video recorders.

Sonic claims to have relationships with more than 250 content providers, and boasts more than 14,000 titles available through the CinemaNow store. Perhaps more importantly, the library will have new releases on the same "day and date" that they become available for DVD purchase.

Also included in the ecosystem is Widevine Technologies Inc. , which will provide the digital rights management (DRM), adaptive bit-rate streaming, and interactive DVD technology for the store.

With the online store at BestBuy.com and digital storefronts embedded in CE devices both protected by Widevine DRM technology, Best Buy customers will be able purchase a title once and stream it online through their PCs, watch it on their big-screen HDTVs, or take the content with them on supported devices.

By launching a storefront on CE devices, Best Buy aims to compete with Amazon.com Inc. (Nasdaq: AMZN), which also sells digital videos online and through CE devices.

Amazon's video library has more than 40,000 assets, including "day and date" titles of its own. Amazon has CE partnerships with Sony Corp. (NYSE: SNE) and Panasonic to allow consumers to purchase streaming movies on their HDTV sets. Viewers can also buy Amazon titles on broadband-connected TiVo DVRs and Roku Inc. advanced set-top boxes.

When asked for comment, a Best Buy spokesman declined to talk about any specific relationships with CE manufacturers or other distribution channels. In an email, he wrote:

"We are always looking at new ways to add to our current portfolio of digital content. We are currently examining the distribution channels to deliver that content (case in point the TiVo deal) and we are looking for new ways to deliver that content to customers in the future."

Representatives from LG and Samsung could not be reached for comment.

http://www.contentinople.com/author....&doc_id=179188
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post #2 of 8 Old 07-15-2009, 05:47 PM
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I guess something like this would be nice for a family, but with separate services, like Netflix, and Best Buy Storefront going on different TVs though, will the TV of the future be bought on the services provided, or the quality of the TV?

I personally would prefer just a TV monitor with no service, and use a PC for any type of video content. Then again it might make for another interesting war, my TV with Netflix is better than your TV with Best Buy Storefront.
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post #3 of 8 Old 07-15-2009, 06:20 PM
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Still it's cool IMO to have varied choices. Now me, I just ordered a Roku and it will be arriving by the end of the week, so not sure something like this is for me (yet). Then again, with a TV like one described above, AND having a Roku box both...well the possibilities could be endless!

Thanks for posting the story...it's interesting to see what's out there, or soon will be available.

DGK
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post #4 of 8 Old 07-16-2009, 04:25 AM
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Originally Posted by DeeKaye07 View Post

Still it's cool IMO to have varied choices. Now me, I just ordered a Roku and it will be arriving by the end of the week, so not sure something like this is for me (yet). Then again, with a TV like one described above, AND having a Roku box both...well the possibilities could be endless!

Thanks for posting the story...it's interesting to see what's out there, or soon will be available.

DGK

You will like the Roku. I dropped DirecTV after 15 years and use the Roku and my PC for all of my TV needs.
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post #5 of 8 Old 07-16-2009, 09:19 AM
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Quote:
Originally Posted by DeeKaye07 View Post

Still it's cool IMO to have varied choices. Now me, I just ordered a Roku and it will be arriving by the end of the week, so not sure something like this is for me (yet). Then again, with a TV like one described above, AND having a Roku box both...well the possibilities could be endless!

Thanks for posting the story...it's interesting to see what's out there, or soon will be available.

DGK

You can also access Amazon VOD through the Roku; other channels to be added soon.

With this expansion of the Best Buy storefront to TVs for digital content, I hope the competition with Amazon, iTunes, PPV, etc., engenders some kind of price war; unless, of course, the prices are pretty much being fixed by the studios.
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post #6 of 8 Old 07-16-2009, 10:06 AM
 
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Quote:
Originally Posted by Zookster View Post

You can also access Amazon VOD through the Roku; other channels to be added soon.

With this expansion of the Best Buy storefront to TVs for digital content, I hope the competition with Amazon, iTunes, PPV, etc., engenders some kind of price war; unless, of course, the prices are pretty much being fixed by the studios.

The studios do control the pricing. I think the breakthrough is going to come via a new model. Netflix has an opportunity to really change the game with their subscription pricing.

The fact is that right now the studios are spending money to manufacture a bunch of physical media, and then seeing those devalued to significantly less than the cost of a digital download/stream. When you can get new titles for < $1 from kiosks, or unlimited subscription from Netflix (where 1/3 of all subscription revenue goes straight to the USPS), then it is time for a fundamental shift.

The studios will eventually realize that it makes more sense to provide new releases (which are readily available via physical media and therefore on kiosks, and subscription services) via streaming rental (including subscription) because their average revenue per user will go up. Netflix has stated repeatedly that the studios would see twice the revenue per rental via streaming then they do with physical media delivery simply by cutting out the USPS. That is an extra $.80 per rental directly to the studios. Do you think they are seeing even a net TOTAL average of $.80 per rental from kiosks who are renting out the titles at $1 each? That leaves the studio with higher average revenue, and without having to manufacture a crapload of shiny metal discs (and cases, liner notes) and deal with shipping costs to get those discs to distributors, etc.

The pricing pressure for digital media is going to come because of the severe pricing pressure on physical media. Once that happens, they will also have to build a viable and acceptable sell-through formula for digital downloads (in order to maintain sell through home video revenue).

I believe that ultimately that means providing the movies without user restricting DRM. Basically giving users the ability to stream to multiple devices, make copies to portable devices (including iPods, Zunes and custom automobile playback devices), as well as users being able to store and stream the content from their own media servers (NAS servers or PC based media servers, etc).
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post #7 of 8 Old 07-16-2009, 01:04 PM
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Quote:
Originally Posted by Zookster View Post

You can also access Amazon VOD through the Roku; other channels to be added soon.

With this expansion of the Best Buy storefront to TVs for digital content, I hope the competition with Amazon, iTunes, PPV, etc., engenders some kind of price war; unless, of course, the prices are pretty much being fixed by the studios.

That was a big reason why I chose the Roku over other options available right now -- the access to Amazon's video download library. That, and that I've already got a Netflix subscription.

Other channels? Any ideas what they might be adding on later? Just wondering.

DGK
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post #8 of 8 Old 07-19-2009, 11:56 AM - Thread Starter
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excerpts

" .... Best Buy must account for changing tastes, like the shift away from CDs and DVDs, which have for years been a crucial generator of foot traffic in Best Buy stores. To cope, Mr. Dunn said, Best Buy was in the process of moving those products out of the center of its stores and focusing eyes and attention on fast-growing product areas, like mobile phones and low-cost laptops."

" .... an atmosphere where consumers were attracted not just to products but also to services that help them master fast-changing technology and configure and connect devices.

The center of the store will become an expression of the way people connect connect with movies, music, pictures, to each other all the things that matter,

http://www.nytimes.com/2009/07/18/te...gewanted=print
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