Sonic Solutions Buying CinemaNow

Sonic Solutions (Nasdaq: SNIC) has agreed to acquire CinemaNow, a Marina Del Rey, Calif.-based online entertainment provider. No financial terms were disclosed. CinemaNow has raised over $38 million in VC funding since 2000, from firms like Cisco Systems, EchoStar Communications, Lions Gate Entertainment, Menlo Ventures, Microsoft Corp. and Trans Cosmos USA. 


Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, today announced that it has entered into a definitive agreement to acquire CinemaNow, a privately held online entertainment provider based in Marina Del Rey, California. CinemaNow is at the forefront of digital video distribution, offering over 6,000 high-quality Hollywood movies, TV shows and music videos to users across multiple platforms. The company has relationships with more than 250 content providers, including all major Hollywood studios, and supplies premium entertainment services to a host of PC and consumer electronics device manufacturers such as Dell, HP, Samsung, TiVo, DivX, and ARCHOS.


Sonic® and CinemaNow recently announced a collaboration to enable the download and burn of DVD movies by integrating CinemaNow’s content delivery system into new Qflix™ DVD drives. Qflix drives have recently become available from a number of companies including Dell, Pioneer and Plextor. CinemaNow will combine with Sonic’s Qflix team to form a new Premium Content Group under the direction of Mark Ely, Sonic’s EVP of Strategy. The group will focus on increasing the placement of CinemaNow’s storefront on PCs and consumer electronics devices, and expanding the adoption of the Qflix technology platform.


“With broadband-connected consumer electronics hitting the market in ever greater numbers, there is a growing need for a service that gives consumers one-click access to premium entertainment on any device in the digital home,” said David Cook, president and COO, CinemaNow. “The combination of CinemaNow’s content and embedded device strategy with Sonic’s technical prowess and broad PC and CE distribution promises to fulfill CinemaNow’s original mission – giving consumers easy access to the best of Hollywood from their PCs, TVs, mobile phones, or anywhere in their digital ecosystems.”


“The digital delivery of premium content is at a tipping point,” said Dave Habiger, president and CEO, Sonic Solutions. “By providing consumers and OEMs user-friendly content services and software that works across multiple platforms, we will make it possible for any device or PC manufacturer to add an online movie store of Hollywood hits to its products. With CinemaNow, we look forward to expanding and deepening our relationship with OEM and retail partners as well as with the millions of consumers that we touch today through our Roxio®-branded digital media applications and online services.”


As the leading provider of professional software systems used in the creation of Hollywood titles on DVD and Blu-ray Disc, Sonic has deep ties to the entertainment industry. Sonic’s technology solutions and Roxio applications power the management and playback of Hollywood content on PCs and CE devices ranging from set-top DVD players and game consoles, to in-car entertainment systems and portable media players. CinemaNow’s vast content libraries and innovative delivery systems will enable Sonic’s product portfolio and technology expertise to span the entire premium entertainment supply chain – from creation through distribution and consumption.


The acquisition is expected to close shortly.


Conference Call Details

Sonic will conduct an investor conference call at 1:30 p.m. PST, or 4:30 p.m. EST, today to discuss details of the transaction. Investors are invited to listen to Sonic’s conference call on the ‘investor relations – webcast’ section of Sonic’s website at or by dialing 877-591-4959 (for domestic callers) or 719-325-4885 (for international callers). A replay of the web cast will be available shortly after the conclusion of the call. An audio replay of the conference call will also be made available shortly after the conclusion of the call. The audio replay will remain available until midnight PST November 22, 2008, and can be accessed by dialing 888-203-1112 (for domestic callers) or 719-457-0820 (for international callers) and entering the passcode 9174829.


About CinemaNow

CinemaNow, Inc. ( is an innovator in digital entertainment technology, delivering high-quality Hollywood movies, TV shows and music videos to users across multiple platforms. Founded in 1999, CinemaNow has partnered with some of the biggest brands in consumer electronics and digital entertainment including ARCHOS, EchoStar Communications, Hewlett-Packard, Macrovision, Microsoft, Samsung, and Technicolor to deliver thousands of video titles directly to consumers. CinemaNow works with more than 250 licensors including 20th Century Fox, Disney, EMI, HDNet, IFC, Lionsgate, MGM, Miramax, NBC Universal, Paramount Pictures, Sony, Sundance Channel, Vivendi Entertainment and Warner Bros.


About Sonic Solutions

Sonic Solutions (NASDAQ: SNIC; enables the creation, management, and enjoyment of digital media content through its Hollywood to Home™ products, services, and technologies. Sonic’s products range from the advanced authoring systems used to produce Hollywood DVD and Blu-ray Disc titles to the award-winning Roxio-branded photo, video, music, and digital-media management applications and services. Sonic’s patented technologies and AuthorScript® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the Qflix™ platform, Sonic is defining new models for the digital distribution of Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.