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Blockbuster streams video to the TV

November 25, 2008 — 10:33am ET | By Pete Wylie

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Blockbuster announced its into the internet delivery of movies to living room set-top boxes Tuesday. The offering, "Blockbuster on Demand," will require users to purchase a set-top box made by 2Wire Inc., but customers can get it for free if they purchase 25 downloadable movies in advance for $99.

Movies will be available for $1.99 after the initial movie credits are used up. No other plans are available for the service, which means that not only did Netflix beat Blockbuster to market by three months, but it offers customers lower, more flexible pricing and distribution to BluRay players, TiVos, and Xbox 360s that save consumers from the purchase of a set-top box. Plus, Blockbuster's plan only offers more than 2,000 titles, while Netflix offers more than 12,000 with its IP-delivery system.

But, Blockbuster CEO Jim Keyes was quick to point out the advantages of its service. He said Blockbuster on Demand will feature mostly new releases, but by "new" he really mean "30 to 60 days after the film's DVD release." Does that still count as new?

Also, Keyes asserts that Blockbuster's pay-as-you go pricing gives customers more flexibility, but Netflix offers the streaming service as a bundle with DVD home delivery, with packages starting at $8.99, so if you want to watch more than four movies a month, Blockbuster is not the best bargain. Keyes also touts the ability to deliver HD content - a most interesting concept given the taste for bandwidth caps AT&T and others have.

In addition to a staunch challenge from Netflix, Blockbuster has to compete with Amazon and Apple for the direct-to-TV movie streaming market.

Sounds like too little, too late.

For more:
- the Chicago Tribune has an article