The film rental battle going down between the movie rental Big Kahuna known as Blockbuster and online rival Netflix seems to shift rapidly. The latest development is that Blockbuster is trying to take down Netflix with a new strategy to push on-demand video content to laptops, portable media players, set-top boxes and mobile phones, among other devices. It also will sell said devices in its stores and via its Web site. It all starts in the second quarter.
The plan will be fueled by a deal with Sonic Systems, which via subsidiary CinemaNow licenses content and handles the back-end functionality for content distribution. CinemaNow will replace supporting technology from Movielink, a company Blockbuster acquired in 2007. After beta testing a Movielink integration with Blockbuster.com, the company decided to go another direction — though content deals from the Movielink testing will remain in place.
Blockbuster is locked in a battle with Netflix, which offers streaming to Microsoft Corp.'s Xbox, TiVo DVRs and desktop PCs, and which said last week that it soon will offer movie streaming for 12,000 titles to a set-top box from LG Electronics. To pre-empt Netflix, last November Blockbuster launched its own set-top box with 2,500 titles. CinemaNow brings 6,000 titles to the mix.
Oddly, Blockbuster will find itself competing not just with Netflix (not to mention DISH Network and cable on-demand services), but also CinemaNow itself. CinemaNow also is integrated with HP MediaSmart TVs and a set-top box from DISH.
