Blockbuster Partners with TiVo, Others

After watching for years as upstarts like Netflix and Redbox eroded their customer base, Blockbuster has finally launched a few salvos of it's own in the war for movie viewers.  Notably, Blockbuster has partnered with DVR maker TiVo to provide an On Demand service which will allow users to rent and purchase movies through their TiVos.  Rentals will start at $2.99; purchases will start at $7.99.

But Blockbuster didn't stop there.  Samsung will also have Blockbuster On Demand available through select broadband-capable telelvision sets and Blu-ray players.  What is most interesting is that none of these new deals in the video rental/streaming/purchase space are exclusive.  Not only have the content providers (Blockbuster, Netflix, Amazon, etc) struck deals allowing them to show up on multiple devices, but the device makers (TiVo, Roku, Samsung, LG, etc) all have agreements with multiple providers.  Until a clear pair of winners emerges, everybody is hedging their bets at this point.

For those of us who don't have to watch the latest movie release of the week, Netflix streaming is a great perk on an already really good service (movie rentals by mail).  Though it doesn't contain every movie, there's a lot to like in its library, enough to give most viewers a way to scratch the impulse viewing itch that deliveries by mail can't reach, and there's no additional cost to use it.  However, Blockbuster's and Amazon's rental services work on Series 2 TiVos, while Netflix streaming requires the faster processors of HD-capable Series 3 TiVos.

I suspect that the low-tech, low-budget crowd will still find their local Redbox kiosk to their liking, as it requires no additional equipment.  That means that Amazon may take the biggest hit from Blockbuster's entry into this space.  If Blockbuster can match the movies that people want to see with the prices they're willing to pay for them, it may allow them to stay competitive and relevant as movie viewing habits continue to shift away from disc pickups at brick-and-mortar stores.