Sonic, Zip.ca join for Canadian download service

DIGITAL: Movies, TV shows to be available online and through electronics devices

By Jennifer Netherby -- Video Business, 6/26/2009

JUNE 26 | DIGITAL: Sonic Solutions is partnering with Canada’s leading DVD-by-mail rental company, Zip.ca, to deliver its Roxio CinemaNow digital movie service to the great white north, the companies announced today.

Zip.ca will introduce the digital movie service to customers by the end of the year, offering movie and TV show downloads both on its Web site and embedded in consumer electronics devices.

The companies will announce later what movie and TV content will be available on the service. Although Roxio CinemaNow has deals in the U.S. with every major studio, to deliver content, it must negotiate new deals for the Canadian market.

Zip.ca is exploring both a la carte rentals and purchases and a subscription model for what will be the first large-scale movie download service in Canada.

“We are already Canada’s leading DVD rental service. Now we hope to fuel membership and growth by becoming consumers’ destination for seamless digital movie access—a one-stop entertainment shop,” Zip.ca CEO Curt Millar said in a statement announcing the partnership.

This is Roxio CinemaNow’s second deal outside of the U.S. Just yesterday Sonic announced a partnership with Fujisoft to deliver movies to Nintendo Wii videogame consoles in Japan.

Sonic executive VP of strategy Mark Ely told Video Business that expanding into Canada made sense because many of the consumer electronic devices on which Roxio CinemaNow will be available this year in the U.S. also will be sold in Canada.

Sonic partnered with Best Buy to sell downloads on the retailer’s Web site and on yet-to-be-named devices sold in stores earlier this month. Roxio CinemaNow also has partnerships with Blockbuster, TiVo, LG Electronics, Dell and Archos.

“Entering new markets is another part of our strategy to make anytime, anywhere access to a broad variety of premium entertainment a reality for more consumers,” Ely said of the new partnership in a statement. “Zip.ca’s reach and leadership in the market will help make this happen in a more timely fashion.”