"A Silicon Valley company known for costly movie servers and a court battle over copying DVDs, on Tuesday is revamping its strategy for the era of downloads," reports The Wall Street Journal, adding, "The closely held company [Kaleidescape] plans to let users of its hardware buy and download digital movies, while still being able to make and store copies of DVD and Blu-ray discs they own. Kaleidescape is initially stocking its first online store with movies licensed under a multiyear deal with Time Warner Inc.’s Warner Bros. movie studio."
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The article continues, "Kaleidescape joins a crowded marketplace of services that let people stream, rent or buy movies through computers or set-top boxes. And most of those options have a much lower upfront cost; Kaleidescape’s systems, designed for people installing fancy home theaters, start at $14,490."