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Best Buy said today it is partnering with online video provider CinemaNow to create a movie download service that would be built into most of the electronic devices it sells that can be connected to the Internet.

Best Buy said it has entered into a multi-year agreement to license Sonic Solutions' Roxio CinemaNow technology. Under terms of the agreement, Best Buy acquired warrants enabling it to purchase shares of Sonic Solutions common stock.

The new service, which is yet to be named, will allow users to access content including new movies, TV shows, independent films, and older catalog titles on a variety of devices. Best Buy said new titles will often be available on the same day they become available on DVDs in retail stores.

The new offering from Best Buy will be competing with the likes of other online movie services from Amazon.com, Netflix and Apple's iTunes Store.

"Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," said Brian Dunn, CEO of Best Buy.

"It also enables us to make deeper and more meaningful connections with our customers and expand our relationships with content owners and hardware vendors to create compelling new home entertainment solutions."

A launch date for the new service has not been announced.

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