Sonic Teams Up With Kmart and Sears (!?!) to Launch Online Movie Service

"Sonic Solutions® (Nasdaq: SNIC) today announced that RoxioNow platform licensee, Sears, has officially launched its online movie download service, Alphaline Entertainment. The new service enables Sears and Kmart customers to download entertainment online, including new movies on the same day they are released on DVD and Blu-ray Disc. Sonic is working with Sears on a multi-phase rollout that includes making the service available from a broad range of connected devices and ensuring compatibility with studio-supported digital programs."

Colour me baffled. I know that streaming movie services are going to get increasingly popular moving forward, but I fail to see what Kmart and Sears can bring to the table...unless it's simply moving the hardware that will tap into this service. If I were to fast-forward to late 2012, I think I'll see this service folding after a failed two years of struggling and Netflix continuing to fight it out with iTunes.