Sears, Kmart Launch Netflix Rival

AlphalineSears may have a new slogan: "Where America Shops ... for movie and TV downloads." The retailer, which also owns Kmart, has launched Alphaline Entertainment, an online movie service that lets users download TV shows and new movies on the same day they are released on DVD and Blu-ray Disc.

Sonic is working with Sears on a multiphase rollout that will make the new service available on a range of devices, including HDTVs and mobile phones.

Sonic's multiyear agreement with Sears extends the reach of the RoxioNow platform, which powers digital services for retailers, cable operators, PC manufacturers, Hollywood studios' direct-to-consumer initiatives and game vendors, extending each company's relationship with buyers.

"Collaborating with Sonic provides a great opportunity for Sears and Kmart to launch digital services for customers seeking even faster access to the latest in home entertainment experiences," stated Karen Austin, president of Consumer Electronics for Sears and Kmart.

Sears isn't the only retailer that wants to grab a share of the lucrative Netflix marketplace.

In February, The New York Times reported that Walmart had bought Vudu, a service that streams movies to Internet-connected TVs -- a deal estimated to cost $100 million. In addition, BestBuy teamed with Sonic to put its movie library in all of the Web-connected devices the company sells at its stores.

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