Along with audio industry, internet is going to bring a big change in the video industry. Within few years from now, people in developed countries may not go to movie rent stores anymore. Instead they would download movies from Internet and watch it from the comfort of their homes.
Sonic Solutions (NASDAQ:SNIC), a digital media software producer, to deliver movies on Internet. This deal would enable Blockbuster subscribers to download movies from Internet with any device including PCs, set-top boxes, mobile phones and portable media players. Block Buster would make this new offering through CinemaNow, Inc., the Internet-based digital video distribution company. Sonic Solutions bought CinemaNow in November 2007.
In 2007, Blockbuster bought Movielink, another major online video service for $6.6 million and invested $148 million in the company to develop its technology but it scrapped the plan and joined with Sonic Solutions, owner of CinemaNow. The new service will be offered in 7500 Blockbuster stores in the second quarter of 2009.