RIP DVD? Best Buy takes movies online

Best Buy sells  lots of DVD’s. That does not mean that content distributed in packages on shelves has a future. In fact, Best Buy’s move to online is a sign that that end is near.

This could spell more trouble for brick and mortar retail. Besides trying to recover shrinking revenues as content sales move online., big box retailers will have a new challenge trying to replace the traffic draw to their physical stores that the movies in packages have provided.

The largest U.S. retailer of consumer electronics is setting up its digital delivery service in partnership with CinemaNow, which has deals with the major movie studios.

The software making it possible to shop CinemaNow’s video library will be included on all the Web-connected devices sold in Best Buy’s more than 1,000 U.S. stores. That means consumers who buy flat-panel TVs, Blu-ray players, personal computers and mobile phones from Best Buy would be able to get downloads of videos the same day they are released on DVDs.

The alliance marks the latest step away from the DVD format. Consumers are getting more ways of finding home entertainment with just a few clicks instead of traveling to a video rental store or waiting for a disc to be delivered through the mail. (Digital Trends)

Does this mean that that 5.25″ optical media is dead? Not at all. But it will be competing with magnetic and silicon storage as a place to hold the media we buy in the cloud. The big box retail channel always follows trends. When best Buy jumps into inline distribution with both feet, it’s near the end for the physical media distribution. What about those who don’t like to buy online? DVD burning Kiosk anyone? The first to market with one of those could be the next billionaire. Not everyone is going to be happy with buying online and figuring out how to use downloaded media on different devices.