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Best Buy, iTunes Validate 'Over-the-Top' Model

A slew of so-called "over the top" services have been coming to market, catching the interest of both consumers and marketers. Today, one - and possibly two - new offerings joined the growing lineup: a tie up with Best Buy and Sonic Solutions and a rumored $30 per month TV subscription service from Apple's iTunes.

These latest initiatives may represent the business model's best case for mainstream adoption given the companies behind them. Right now, as these new services roll out onto the internet, the focus is on the business model and how sustainable it is for content providers - namely cable and TV networks. As these services take off, though, the options for marketers will undoubtedly grow.

Online marketers want to advertise around content that consumers are watching - and these applications show a lot of promise, according to MacNewsWorld.

New Approaches

Best Buy, according to the Wall Street Journal, has acquired warrants that will enable it to buy Sonic Solutions' common shares and allow it start selling products carrying the increasingly popular video-on-demand services from the much smaller company.

To start, the electronics retailer will embed Sonic's Roxio CinemaNow technology in web-connected TVs, portable media players, PCs, Blu-ray players, set-top boxes, and mobile phones from a variety of yet-to-be named manufacturers.

Then, Best Buy customers will be able to buy or rent movies from CinemaNow, some of which will be available on the same day as their DVD release.

Best Buy made a related move this summer, digitally expanding its marketing efforts via the TiVo digital video recorder (DVR) service. It announced a partnership with TiVo to create a user interface for customers who buy TiVo DVRs from Best Buy, writes RetailerDaily.

Apple Deal a Loud Rumor

Though the iTunes's subscription model appears to be just a rumor for the moment; industry scuttlebutt reveals that Apple has been pitching the concept to TV networks. The service would not be tied to a new piece of software but would rather be tied to its existing iTunes software and store, writes MediaBuyerPlanner.

Apple reportedly wants to launch the service by early next year, but has not made any announcements about any content companies wanting to give it a go. Disney might be expected to be among the first to agree to the service, having seen significant success when it was the first to allow its content on iTunes, according to the Apple Insider.

Over the Top in Action

Other examples of over-the-top initiatives include Epix, a new subscription cable movie channel that also streams to the web, and Walt Disney Co.'s Keychest service, which will give consumers digital rights to content so it can be viewed on multiple devices.

Time Warner and Comcast are working on another initiative, dubbed "TV Everywhere," which would allow subscribers to access their favorite cable content on other devices.

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