This beats the Sears catalog: Retailer set to deliver online video

More competition for cable. Sears is licensing RoxioNow technology from Sonic Solutions to power a new on-demand video service called Alphaline Entertainment.

The giant retailer, which also includes Kmart, plans to launch the service in the fall with movies that it will rent or sell "at prices to be determined by the market at the time."

Sears joins Wal-Mart stores in the digital media space with a deal that "signals that retailers are really embracing the idea of participating in the digital supply chain," said Mark Ely, Sonic Solutions' executive vice president of strategy. Sonic Solutions brings relationships with major Hollywood studios to the mix as well.

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