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Nintendo Wii still cannot play conventional DVDs and it is still unclear when, if at all, it will get that capability, however, Nintendo does understand importance of digital distribution of content and will start to offer appropriate service in 2009.

Nintendo will team up with ad agency Dentsu to launch a video distribution service on the Wii console, according to a Nikkei business daily news-paper, which was quoted by Reuters news-agency. The service will initially offer cartoons and entertainment shows “created for the new service to differentiate it from other” online delivery video services, which offer existing content.

The service will get online early next year in Japan and the company plans to launch a similar offering in the USA later in 2009, according to the media report. The video service will not be free and will establish a new revenue stream for Nintendo.

It remains to be seen whether Nintendo Wii’s video service will rely solely on exclusive content created by Nintendo, or will also license already made cartoons or TV-shows. In case Nintendo limits its customers in the U.S. or Europe with exclusive content, the service may not get popular at all as customers in these regions are very used to content made by local or Hollywood studios.

Nintendo did not comment on the news-story.

Tags: Nintendo, Wii, Dentsu

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