Dear William,

We have some good news and some bad news. The bad news is that, as of 3/31/12, the Blockbuster app will no longer be available on your TiVo DVR. We are updating our technology platform and will not be able to continue supporting your device.

You won’t be able to watch movies from Blockbuster On Demand on your device, but you can still watch on any of our other devices or stream via PC or Mac. See a list of supported devices.

Your friends at Blockbuster

I spoke to TiVo on Friday, and they basically found out about this along with the rest of the world – the day before. Neither Blockbuster, nor parent Dish Network, had notified TiVo that this was coming. TiVo had just started discussions with Blockbuster after hearing the news, and those are still ongoing. TiVo says they’ll make a statement on this once they have something concrete to say.

The reason for this really has nothing to do with TiVo, or any of the other similarly impacted platforms that are losing Blockbuster. This all started back in 2007 when Blockbuster attempted to enter the digital movie market by acquiring Movielink. This attempt failed, so in 2009 they decided to try again by partnering with CinemaNow, which had just been acquired by Sonic. Ever since then Blockbuster’s download service has been powered by Sonic, which has since been acquired by Rovi.

Blockbuster’s deal with Sonic expires on 3/31/12, and they aren’t extending it. Since all of the current platforms that support Blockbuster’s download service use the Sonic implementation, they’re all going to stop working – and that includes TiVo.

While most Blockbuster On Demand products have been using the download service, for a while now Blockbuster has also had a streaming service. It is used primarily to support mobile devices and computers, although Samsung has been supporting it on some of their recent home entertainment products as well. It looks like Blockbuster is phasing out the download service completely, in favor of going streaming only.

This streaming service also provides hope for Blockbuster On Demand’s return to TiVo and other platforms. Samsung has already shown that home entertainment devices can support the service, and I suspect there is no technical barrier to bringing it to devices such as TiVo. However, presuming the business side of things is addressed, it will still require all new development to implement the streaming client for each platform. Given the time needed for development, and then testing, I wouldn’t expect to see anything in the near future.

Also, the streaming service isn’t going to support older hardware that can’t handle new codecs. That means, just like Netflix, Hulu Plus, YouTube, etc., it will never hit the older TiVo Series2 platforms. And while technical reasons will keep it off of the Series2, I expect business reasons will keep it off of the Series3 as well. Any new client development will almost certainly be done in Adobe Air in the new SDK, just as with Hulu Plus. This will only run on the new Series 4/Premiere hardware. Since the Series3 line is no longer produced and sold, there is really no justification for investing resources in developing an HME-based client just for that platform.

So Blockbuster On Demand is going away, but it may be back at some point – as a streaming app on the Premiere.

Blockbuster is partnering with Sonic to bring Blockbuster branded video services to consumers, including the existing CinemaNow content service. It sounds like win-win for Blockbuster and Sonic. Blockbuster gets a successful service which already has a number of deals with consumer electronics vendors, which Sonic gets the Blockbuster brand, which is still a fairly strong brand in the video rental market. It is also a pretty good deal for the CE vendors who have already made deals to bring CinemaNow content to their devices, as they get the strong Blockbuster brand.

I wonder if we’ll be seeing the Blockbuster brand on TiVo, since they currently use CinemaNow for Disney content, and more content is expected.

Jan 14, 2009 00:00 ET

Blockbuster and Sonic Solutions Team for Internet Movie Delivery

Alliance to give consumers instant access to Blockbuster digital movie service across extensive range of home and portable devices

MARIN COUNTY, Calif. and DALLAS, Jan. 14 /PRNewswire-FirstCall/ — Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) , a global leader in entertainment, and Sonic Solutions (NASDAQ:SNIC) , the leading technology and service provider for premium movie content, today announced an alliance to give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices. Under the multi-year, preferred-provider agreement, Blockbuster will supply the branded consumer interfaces and Sonic will power content delivery across PC and consumer electronic devices.

The two companies are collaborating with a host of consumer electronic (CE) manufacturers, including Sonic’s existing CinemaNow providers, to expand the ecosystem of interoperable devices offering the Blockbuster service. These devices include PCs, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set-top boxes, mobile phones and Web-connected television sets. Additionally, the two companies will make their digital libraries of mainstream content available under the Blockbuster brand resulting in one of the most expansive VOD (video on demand) and EST (electronic sell-through) offerings in the marketplace.

“We are excited to be partnering with Sonic, the industry’s leading entertainment delivery and technology provider, to make Blockbuster’s digital entertainment service easily and instantly available to consumers through the widest range of devices available in the marketplace,” said Jim Keyes, Blockbuster Chairman and CEO. “Blockbuster is a ubiquitous entertainment presence in the physical world. Through this alliance with Sonic, we plan to become a ubiquitous presence in the digital world as well. Our goal is to offer consumers the most digital content, the most accessibility, via the most devices, both in- and out of home.”

Sonic’s device ecosystem, powered by its new CinemaNow™ SDK (software development kit), will help streamline the introduction of Blockbuster’s digital entertainment service into a wide variety of consumer electronic devices, both Mac- and Windows-enabled, via adaptive streaming and progressive download. The devices will be sold through Blockbuster retail stores, blockbuster.com and other leading retailers.

“With more and more broadband-enabled consumer electronics hitting the market, there is a growing need for a service that gives consumers access to premium entertainment on any device, anytime and anywhere,” said Dave Habiger, president and CEO, Sonic Solutions. “By pairing Sonic’s digital delivery technology with Blockbuster’s trusted brand and library of content, we enable any CE manufacturer to add an impressive digital movie service to its product offerings and in doing so, create the most flexible digital entertainment service for consumers.”

About Blockbuster

Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) is a leading global provider of in-home and portable movie and game entertainment, with more than 7,500 stores throughout the Americas, Europe, Asia and Australia. The Company may be accessed worldwide at www.blockbuster.com.

About Sonic Solutions

Sonic Solutions® (NASDAQ: SNIC; http://www.sonic.com/) enables the creation, management, and enjoyment of premium and personal 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, field-proven SDKs and services. Sonic’s Premium Content Group, which includes CinemaNow, is helping provide consumers convenient access to Hollywood entertainment for download and enjoyment on a broad range of digital devices. Sonic Solutions is headquartered in Marin County, California.

Forward-Looking Statements

This release may contain forward looking statements that are based upon current expectations, including the market acceptance and success of the alliance between Blockbuster and Sonic Solutions. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties. This press release should be read in conjunction with Blockbuster’s and Sonic Solutions’ most recent annual reports on Form 10-K, quarterly Forms 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of each company’s business including risks and uncertainties that may affect future results. Neither Blockbuster nor Sonic Solutions undertakes to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, the Roxio logo, CinemaNow, and Hollywood to Home are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. Blockbuster, the Blockbuster logo, blockbuster.com and Blockbuster Online are trademarks or registered trademarks owned by Blockbuster Inc. in the United States and/or other countries.

All other company or product names are trademarks of their respective owners and, in some cases, are used under license. Specifications, pricing and delivery schedules are subject to change without notice.

Source: Blockbuster Inc.; Sonic Solutions

CONTACT: Karen Raskopf, karen.raskopf@blockbuster.com, or Randy
Hargrove, randy.hargrove@blockbuster.com, both of Blockbuster Inc.,
+1-214-854-3190; or Chris Taylor of Sonic Solutions, +1-408-367-5231,
chris_taylor@sonic.com

Web Site: http://www.blockbuster.com/
http://www.sonic.com/

Press release:

Jan 8, 2009 06:30 ET

Sonic Brings Hollywood Hits to Connected CE and PC Devices with CinemaNow Software and Services

New CinemaNow SDK Accelerates Time to Market for CE Vendors Seeking to Deliver Premium Content to the Digital Home

LAS VEGAS, Jan. 8 /PRNewswire-FirstCall/ — Sonic Solutions® (NASDAQ: SNIC) , today announced the CinemaNow SDK to enable consumer electronics (CE) manufacturers to rapidly integrate and deploy movie sell-through and rental store services in their devices. Sonic also announced it is providing entertainment delivery services for a new array of connected CE devices and digital home platforms.

Video entertainment from Sonic’s CinemaNow will be available on new Network Blu-ray Disc players from LG Electronics, through the Fujisoft-enabled Nintendo Wii game console in Japan, and featured in the newly announced digital home services platform from Prodea Systems. CinemaNow content will also be available as part of the Widget Channel television application framework developed by Intel and Yahoo, which will bring Web-based services to a number of broadband-connected products from major CE original equipment manufacturers (OEMs). Demonstrations of the CinemaNow ecosystem are available by appointment in Sonic’s private meeting room at the Renaissance Hotel (Copa Conference Suite A and B) during the Consumer Electronics Show, January 8-11, Las Vegas, NV.

“We are extremely pleased to be providing premium content services to a broad range of innovative new products that are helping to shape the future of digital home entertainment,” said David Cook, executive vice president and general manager of Sonic’s Premium Content Group. “These latest agreements, along with the release of a CinemaNow SDK, will help further our goal to provide consumers trouble-free access to ‘buy anytime, watch anywhere’ digital movies, TV shows and music videos.”

The CinemaNow SDK streamlines the integration of digital entertainment delivery and sell-through services. The SDK provides consumer electronics manufacturers with a cost-effective way to rapidly deploy content services on a range of devices such as Blu-ray Disc players, Web-connected televisions and set-top boxes. By featuring CinemaNow, manufacturers are able to provide customers with a flexible entertainment solution that offers a-la-carte purchase options as well as extended multi-device playback compatibility.

“Our collaboration with Sonic on Blu-ray Disc players brings additional exciting digital entertainment options to consumers,” said Peter Reiner, senior vice president, marketing and strategy, LG Electronics USA. “With our premium 2009 line of Blu-ray Disc players, LG is bridging the gap between packaged media and video-on-demand services to provide entertainment solutions that fit consumers’ digital lifestyles and demand for broad variety of content.”

CinemaNow is at the forefront of digital video distribution, offering high-quality Hollywood movies, TV shows and music videos to users across multiple platforms. CinemaNow streamlines distribution and solves device interoperability at the time of delivery. CinemaNow has relationships with more than 250 content providers and a content portfolio of over 14,000 titles that includes entertainment from major Hollywood studios and independent distributors, broadcast and cable television shows, and music videos from major labels. CinemaNow supplies premium entertainment services to a host of PC and consumer electronics device manufacturers including ARCHOS, Dell, EchoStar Communications, Hewlett-Packard, Macrovision, Microsoft, Pioneer, Samsung, Technicolor and TiVo.

About Sonic Solutions

Sonic Solutions (Nasdaq: SNIC; http://www.sonic.com/) enables the creation, management, and enjoyment of premium and personal digital media content through its Hollywood to Home(TM) 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, field-proven SDKs and services. Sonic’s Premium Content Group, which includes CinemaNow, is helping provide consumers convenient access to Hollywood entertainment for download and enjoyment on a broad range of digital devices. Sonic Solutions is headquartered in Marin County, California.

Forward Looking Statements

This release may contain forward looking statements that are based upon current expectations, including the launch, distribution, and market acceptance of the CinemaNow service and SDK. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties, including those discussed in Sonic Solutions’ annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with Sonic Solutions’ most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company’s business including risks and uncertainties that may affect future results. Sonic Solutions does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, the Roxio logo, CinemaNow, Creator, Toast, Hollywood to Home, AuthorScript and Qflix are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject to change without notice.

Source: Sonic Solutions

CONTACT: Chris Taylor Sonic Solutions, +1-408-367-5231,
chris_taylor@sonic.com

Web Site: http://www.sonic.com/

Toast 10 Titanium also includes AVCHD Archive, which makes it easy to burn content form HD camcorders to BD or DVD, Web Video To Go, which allows users to grab video from websites to save locally or transfer to portable devices, place-shifting support which streams content from the Mac to a Streamer application on an iPhone or iPod Touch, and a number of others.

Toast 10 Titanium goes on sale today at http://www.roxio.com/ for $99.99, with special pricing at MacWorld Expo January 5-9. The High-definition/Blu-ray Disc (HD/BD) plug-in, which is required to author BD discs and is normally $19.99, is available free to those who purchase Toast 10 Titanium from http://www.roxio.com/ through February 5, 2009. Toast 10 Titanium Pro is also available for $149.99.

Press release:

Jan 5, 2009 06:30 ET

Roxio Launches Toast 10 Titanium at Macworld Expo

Also Introduces Pro Version Packed with Advanced Photo, Video, and Audio Capabilities

SAN FRANCISCO, Jan. 5 /PRNewswire-FirstCall/ — Macworld Expo, Moscone Center — Roxio®, a division of Sonic Solutions® (NASDAQ:SNIC) , the leader in digital media software, today announced the immediate availability of Toast® 10 Titanium, the latest version of the company’s market-leading burning and digital media software for the Mac®. The latest version helps greatly enhance and extend Mac OS X and iLife® applications with a broad range of additional capabilities for creating, sharing, and enjoying personal digital media content.

Toast 10 delivers groundbreaking digital media functionality to Mac users with a range of pioneering features that includes: Mac2TiVo for sending home movies and other video content from a Mac to a TiVo® DVR; an audiobook creator for converting audiobook CDs into files compatible with portable devices; AVCHD™ Archive for quickly backing up original content from high-definition camcorders onto DVD or Blu-ray Disc (BD), and a Web video file capture and conversion tool that allows Web-based video to be enjoyed on DVD or mobile devices. Toast 10 Titanium is available today at http://www.roxio.com/ and at Macworld Expo booth #2238.

“Toast is far more than better burning on Mac OS; it’s about enabling users to manage, create, enjoy and simply do more with their personal library of digital photos, music, and video,” said Vito Salvaggio, vice president of consumer products, Sonic Solutions. “This latest version will have special appeal to consumers that want to easily move digital media between their Mac and digital devices such as the iPhone® and TiVo®, or enjoy Web-based video content offline.”

New in Toast 10 Titanium:

– AVCHD™ Archive — Backup original video from AVCHD camcorders direct to DVD or BD media in one easy step. Use the discs in BD players or as source materials in future iMovie or Toast projects.

– Mac2TiVo — Send standard definition and HD video from your Mac to your TiVo DVR for viewing on your TV.

– Web Video To Go — Save Web video from your favorite video sharing sites to view offline, burn or convert it for viewing on portable players such as an iPod or iPhone.

– On-the-go Entertainment — Stream and watch television programs, such as EyeTV recordings and TiVoToGo transfers on your iPhone or iPod touch over Wi-Fi with the new iPhone native application Streamer®.

– Portable Audiobooks — Convert audiobook CDs into single audiobook files for playback on your iPod or other portable player — complete with individual chapters — no more individual audiobook chapter files scattered throughout your iTunes library or iPod.

– Music Builder — Expand your audio library by capturing streaming audio. Toast now automatically splits captured songs into tracks, tags them with title and artist information, and then sends them to iTunes.

– Folder Sync — Synchronize folders bi-directionally between multiple computers, network volumes or external hard disks.

– Stunning DVDs — Create personalized DVDs with any of the over 20 new DVD and Blu-ray Disc menu styles — available in both full screen and high-definition widescreen versions.

Introducing Toast 10 Titanium Pro

Today Roxio also released Toast 10 Titanium Pro aimed at prosumers, creative professionals and designers, as well as photo and video hobbyists. In addition to offering everything available in Toast 10 Titanium, Toast 10 Pro includes the High-Definition/Blu-ray Disc plug-in as well as these award-winning, third-party applications for developing advanced photo, video, and audio projects:

– HD/BD Plug-In — Author HD video content on to standard DVDs and Blu-ray Discs. Take high-def (HD) video footage from AVCHD™ camcorders, TiVo® and EyeTV and create Blu-ray Discs or even standard DVDs with HD content that can be played on any standard Blu-ray set top box or PlayStation® 3 game console.

– SmartSound Sonicfire™ Pro — Orchestrate the perfect sound track to accompany videos and slideshows. Use Sonicfire Pro’s unique automatic “Mood Mapping” feature or select from a library of included music tracks and adjust the mix and feel of the score to perfectly match your videos and slideshows.

– BIAS SoundSoap™ — Remove unwanted noise like wind, hisses, scratches, and pops from LPs, cassettes, or almost any audio, music or video soundtrack.

– LightZone™ — Produce striking photos in a simple and intuitive way. Sophisticated features such as zone mapping and relight give you the control to achieve professional quality results.

– FotoMagico™ — Turn pictures into spellbinding slideshows with a few simple clicks, and then present them in high definition. Innovative text, transition and alignment tools ensure astonishing results. Burn your slideshow to DVD or Blu-ray Disc for easy viewing and sharing.

Pricing and Availability

Toast 10 Titanium is available direct from Roxio at http://www.roxio.com/ for $99.99. Special pricing is available at Macworld tradeshow, running January 6-9. An accompanying High Definition/Blu-ray Disc (HD/BD) plug-in, which is needed to author Blu-ray Disc video, is sold separately for $19.99 and is available free for those who purchase Toast 10 Titanium online at roxio.com through February 5, 2009. Toast 10 Titanium Pro also goes on sale today for $149.99.

About Roxio

Roxio®, Sonic’s Consumer Products Group, provides a range of award-winning digital media creation, management, preservation, sharing, and enjoyment applications, field-proven SDKs, and Web-based services. Roxio solutions offer the perfect blend of ease and power, enabling consumers to achieve professional results from their photo, video, and music projects with minimal effort. Roxio’s flagship applications, Creator for the PC and Toast for the Apple Macintosh, are the best-selling products in their respective categories in North American retail.

Roxio’s parent company, Sonic Solutions (NASDAQ: SNIC; http://www.sonic.com/) enables the creation, management, and enjoyment of premium and personal digital media content through its Hollywood to Home™ products, services, and technologies.

Forward Looking Statements

This press release may contain forward looking statements that are based upon current expectations, including the launch, distribution, and market acceptance of Roxio Toast 10 Titanium and Toast 10 Titanium Pro. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties, including those discussed in the Company’s annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company’s most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company’s business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, the Roxio logo, Toast, Roxio Streamer, and Hollywood to Home are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject to change without notice.

Source: Roxio

CONTACT: Chris Taylor of Roxio, +1-408-367-5231, Chris.Taylor@roxio.com

Web site: http://www.roxio.com/
http://www.sonic.com/

Interestingly, both companies also have relationships with TiVo. TiVo recently added downloadable content from Disney, which is provided through CinemaNow. More CinemaNow content is promised going forward. And, of course, Sonic’s Roxio Creator, Toast, and Popcorn are the only commercial products officially sanctioned for use with TiVoToGo.

Press release:

Nov 19, 2008 16:00 ET

Sonic to Acquire CinemaNow

Acquisition to Serve as Foundation of New Sonic Premium Content Group

NOVATO, Calif., Nov. 19 /PRNewswire-FirstCall/ — 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 www.sonic.com 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. (http://www.cinemanow.com/) 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; http://www.sonic.com/) 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.

Forward Looking Statements

This press release and the conference call to discuss the CinemaNow acquisition contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are made as of the date of this press release based upon our current expectations. All statements, other than statements of historical fact, regarding our strategy, future operations, financial position, estimated revenue, projected costs, projected savings, prospects, plans, opportunities, and objectives constitute “forward-looking statements.” The words “may,” “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “potential” or “continue” and similar types of expressions identify such statements, although not all forward- looking statements contain these identifying words. Such forward-looking statements include, but are not limited to expectations regarding the expected closing date of the CinemaNow acquisition and the distribution and the market acceptance of CinemaNow technologies and services. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to: risks related to the acquisition and the integration of CinemaNow’s assets, personnel and systems; the negative impact of current macroeconomic conditions on consumers and associated impact on their ability and inclination to spend on leisure and entertainment related activities and related software and electronics; the timely introduction and acceptance of new products and services, including but not limited to the rate of acceptance of Sonic’s Qflix initiative, online services and high-definition products by content owners, original equipment manufacturers and consumers; competing products and services that may, now or in the future, be available to consumers; pricing pressures associated with products or services offered by current or future competitors; Sonic’s ability to maintain sufficient liquidity and continue to fund its capital needs; the costs associated with new product and service introductions and the possible adverse effects on gross margins; fluctuations in demand for Sonic products and services; unforeseen increases in operating expenses; loss of significant customers, major distributors or key suppliers; and risks associated with international operations. Additional discussion of these and other risks, uncertainties and factors affecting Sonic’s business, prospects and future results is contained in the company’s periodic filings with the Securities and Exchange Commission. Sonic does not undertake to update any forward-looking statements unless otherwise required by law.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used under license.

Source: Sonic Solutions

CONTACT: Chris Taylor of Sonic Solutions, +1-408-367-5231,
chris_taylor@sonic.com

Web site: http://www.sonic.com/
http://www.cinemanow.com/

A market leading company like Sonic walking away from the format certainly isn’t good news for HD DVD, especially on top of all the other hits they’ve been taking. This basically means Sonic doesn’t feel they’d be able to achieve a high enough return on investment to continue developing their HD DVD tools and they see more return from Blu-ray, so they’re shifting their resources appropriately.

The full press release is below:

Jan 30, 2008 06:30 ET

Sonic’s Professional Products Group to Fuel Growth of Blu-ray Disc and Digital Distribution

New Product Releases to Streamline BD-Live and DVD-on-Demand Content Production

NOVATO, Calif., Jan. 30 /PRNewswire-FirstCall/ — Sonic Solutions(R) (NASDAQ:SNIC) , the leader in digital media software, today announced that its Professional Products Group will focus its research and development resources on the creation of new applications for cutting-edge authoring of Blu-ray Disc titles that encompass the interactive and connected-content capabilities of BD-Live. The group will also increase resource allocation on developing its encoding and title creation applications that streamline the process of preparing video entertainment for digital distribution. In order to address these emerging market opportunities and optimize investment return, the Professional Products Group will conclude sales of its Scenarist(R) HD DVD authoring product line.

“Extending Sonic’s long history of commitment and support for the professional sector, we are aligning our professional product portfolio to address the evolving needs of our high-end customers,” said Dave Habiger, president and CEO, Sonic Solutions. “Our Professional Products Group plays a significant role in supporting the development of high-definition formats, including the contribution of core IP to HD DVD and Blu-ray Disc joint portfolio licenses. Going forward, the group will direct its considerable format expertise on helping our professional customers fulfill the richly interactive promise of Blu-ray Disc including BD-Live, and aligning with a broader company strategy to enable the secure and efficient digital-distribution of video entertainment.”

Part of Sonic’s industry-leading professional authoring solutions, Scenarist provides the specification-level control required to author BD titles of uncompromising interactivity and compatibility. In 2008, an expanded feature set will simplify the creation of highly interactive BD components, such as enabling BD-Live, which enhances on-disc content in broadband-connected players. To streamline the creation of BD-Live, Sonic will build upon its pioneering InterActual(R) technologies, which today enable millions of movie enthusiasts to benefit from a similar ‘connected content’ experience when viewing DVDs on a PC.

“Our professional authoring customers are actively engaged with expanding their services in advanced interactive and online content creation. With a focus on Blu-ray Disc, we’re able to meet this demand with new technologies and applications that leverage the growing-capabilities of the robust BD format to deliver dynamic entertainment experiences that consumers not only want, but have also come to expect from today’s connected-content platforms,” said Rolf Hartley, senior vice president and general manager of Sonic’s Professional Products Group. “Commensurate with this focus, we’re building our solutions in support of video delivery beyond professional packaged media and assisting in the enhancement of emerging platforms that provide consumers convenient, flexible access to high-quality entertainment.”

To further enable the authoring community, Sonic will offer its Scenarist HD DVD customers a special promotion to exchange their authoring system(s) for a Scenarist BD system. Sonic’s Professional Products Group will maintain its high-end support services as part of its SonicCare(TM) program for HD DVD customers who elect not to participate in the special promotion program and will provide software update releases where appropriate in keeping with its standard practice.

About Sonic’s Professional Products Group

Sonic’s Professional Products Group (PPG) develops authoring and encoding systems used in the release of a wide variety of video entertainment including major motion pictures on standard-definition and high-definition discs. Sonic’s world-renowned Scenarist(R) authoring and CineVision(TM) video and audio encoding systems are designed for highly skilled professional content creation facilities including high-end authoring and design houses, major motion picture studios, and disc replicators. Sonic’s Professional Products Group is actively involved in the development and implementation of new entertainment standards and formats.

About Sonic Solutions

Sonic Solutions (NASDAQ: SNIC; http://www.sonic.com/) enables the creation, management, and enjoyment of digital media content through its Hollywood to Home(TM) products, services, and technologies. Sonic’s products range from the advanced authoring systems used to produce Hollywood DVD, and Blu-ray Disc film releases to the award-winning Roxio(R)-branded photo, video, music, and digital-media management applications. Sonic’s patented technologies and AuthorScript(R) 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 DVD On Demand(TM) and Qflix(TM) platforms, Sonic is defining new models for the digital distribution of premium Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.

Forward Looking Statements

This press release may contain forward-looking statements that are based upon current expectations, including the distribution and market acceptance of Sonic’s professional products. Actual results could differ materially from those projected in the forward-looking statements as a result of various risks and uncertainties, including those discussed in the Company’s annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company’s most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company’s business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward-looking statements.

Sonic, the Sonic logo, Sonic Solutions, Scenarist, AuthorScript, Hollywood to Home, Sonic DVD On Demand, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license.

Source: Sonic Solutions

CONTACT: Chris Taylor of Sonic Solutions, +1-408-367-5231,
chris_taylor@sonic.com

Web site: http://www.sonic.com/

Additionally, Blu-ray.com is reporting that ‘inside sources’ inform them that Sonic Solutions will be dropping HD DVD authoring support from their Scenarist line of professional disc authoring tools. They will continue to support existing HD DVD customers, but will focus on Blu-ray authoring going forward. There is no indication of changes in their consumer products, such as Roxio, at this time.