Thursday, December 11, 2008

Blockbuster Goes Set-Top Box

Blockbuster, Inc. has introduced a new set-top box that brings the movie rentals directly to your television set. The new device works similarly to the way that cable television set-top boxes currently provide on-demand services. "Eventually, we'll give customers instant access to any movie on any device with an Internet connection and a screen," said Keith Morrow, Blockbuster's chief information officer.

We love the idea of Blockbuster entering into this market. In reality, they are sort of catching up at this point but we are hopeful they take it much further by offering a variety of new features. The company teamed up with Microsoft and is using the Live Mesh platform to provide the rental services.

Its another step in the right direction for the movie rental market and the competition should further boost the technology and pricing models. The mail order program that Blockbuster introduced a few years ago to compete with Netflix offered some major advantages over its rival. The ability to turn in the movies to a nearby store location in exchange for another rental had many people running back to Blockbuster.

We want to know how the new set-top box is going to compete with their current mail rental business? What would be the cost per movie or how many do you get per month for the subscription price? If each movie rental is similar to the price of an in-store rental, I could see a slow adoption rate among the members of the mail rental program. Someone using the mail rental program to its fullest potential could see 20 or movies per month for a little over $20.00.

No comments: