DivX to Help Bow German VOD Movie Store2 Sep, 2010 By: Erik Gruenwedel
DivX Sept. 2 said it signed a deal with one of Europe’s largest consumer electronics retailers to help launch an online movie download service in Germany.
The agreement between the San Diego-based digital media company and Media Markt, which operates 589 retail stores throughout Europe and another 235 stores in Germany, was made at this week’s IFA trade show in Berlin.
As part of the agreement, DivX is overseeing the back-end infrastructure that allows consumers to download and playback movies on DivX certified devices, including Internet-enabled Blu-ray Disc players, from the Media Markt website.
In addition DivX is working with Nowtilus, a German VOD provider, to manage all technical distribution processes from licensing to encoding, film delivery and payment.
“Our new service with Media Markt will help us continue to deliver on our mission of connecting people with entertainment, regardless of geography or device type,” said Matt Milne, EVP, sales and marketing at DivX.
The German CE chain is among a growing trend of retailers, including Best Buy, Sears and Walmart, that are bowing proprietary digital distribution platforms for music, movies and TV programming.
In June, DivX was acquired by Sonic Solutions in a cash/stock deal worth $323 million. The merger transaction is awaiting federal approval.