The player: Scott Bahneman, co-founder and chief executive officer of MusicGiants.

The play: Mr. Bahneman, who co-founded high-definition music distributor MusicGiants in 2004, branched out into HD movie distribution through its VideoGiants service in January by reaching a deal with Viacom unit Paramount Home Entertainment. VideoGiants distributes super-high-definition versions of some of Paramount’s films to high-end videophiles through servers, hard drives and downloads. Mr. Bahneman hopes to reach agreements with “one or two” more of the major studios by September and eventually triple the company’s annual revenue with the film service.

The pitch: VideoGiants appeals to the high-end home entertainment customer by distributing digital versions of movies whose files are two to three times the size of those found on a typical Blu-ray disc. Many of the films are distributed through media servers made by companies such as Niveus Media and Aspen Media Products; those servers fetch between $2,000 and $10,000. “Blu-ray’s fine up to a 60-inch screen, but when you get to 100 inches, it’s going to start to artifact,” says Mr. Bahneman. “This is premium fuel for high-performance gear.”

The challenges: VideoGiants’ limited selection and high pricetag has limited its distribution primarily to custom home-entertainment installers, although Mr. Bahneman looks to make the product available at broader electronics retailers such as Best Buy. Once downloads of VideoGiants’ movies become more widespread, its pricing will be substantially higher than other HD downloads, with some titles costing as much as $40.

Backstory: Mr. Bahneman, 46, co-founded MusicGiants after two decades in the credit card processing industry, where he was a partner in a company that specialized in processing electronic drafts of signed credit slips that was eventually acquired by U.S. Bank. “We looked at media as the next logical thing that was going to go from a physically distributed good to an electronic one,” says Mr. Bahneman, who grew up in Minnesota and North Dakota and graduated from University of North Dakota.