March 20, 2009

Samsung To Offer Movie Service With Products

Samsung Electronics Co Ltd. launched a service that will allow customers to buy or rent movies and TV series to download to their mobile phones.

The variety that Samsung is offering includes over 500 blockbusters from top studios Warner Bros MTWX.N, Paramount and Universal, making it competitive with other mobile media offerings from Apple Inc. and Nokia Oyj.

Samsung said in a statement, that its movie store will initially launch in Britain and Germany, extending to other key European markets later in the year.

The service will be compatible with video enabled Samsung phones only, like the new Tocco Ultra Edition.

Samsung is planning to extend its new service to notebooks, MP3 and MP4 portable music players and Samsung TVs.

The technology Samsung Movies is using is owned by digital movie retailer Acetrax, which holds agreements with film studios and music labels.

The price for a 24-hour rental will start at $3.55, or $7 to purchase a movie.

Samsung said it will double its titles to 1,000 by the end of the first quarter, then double it again to 2,000 movies by the end of June.

UK-based research firm CCS Insight said in a note, "The move is tangible progress in (Samsung's) convergence strategy and a first step in delivering consumer services to rival those from the likes of Nokia and Sony Ericsson."


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