Blockbuster, TiVo Team Up to Upset Netflix

By Scott Reeves Mar 25, 2009 11:45 am

Brief scrutiny of today's headlines.



Blockbuster (BBI) continues to play catch-up with Netflix (NFLX) in the battle for couch-potato supremacy.

Blockbuster plans to sell and rent movies through TiVo’s (TIVO) digital video recorders. The new service is scheduled to begin in the second half of 2009.

Netflix now offers movies and TV shows via TiVo digital video recorders and other equipment as part of its “Watch Instantly” service. The difference: Blockbuster will offer new titles 2 to 4 weeks after they hit the shelves in video stores. That would make the new titles available to customers before the movies are shown on pay-per-view TV.

Blockbuster now offers video-on-demand through Vizio TVs and a 2Wire media player. Netflix offers video-streaming through Microsoft (MSFT) Xbox game consoles, Blu-ray players with Internet capability developed by LG and Samsung. Movies also can be viewed on Roku digital video players.

TiVo also has deals with Amazon (AMZN) and Comcast (CMCSA). Cox Communications and DirectTVGroup also use TiVo’s set-top boxes.

The deals are part of Hollywood’s effort to distribute its movies as widely as possible. US theater ticket sales generate about $11 billion a year, but the video game industry now generates about $14 billion a year in global sales. This explains why some movie characters morph into video games and a few video game characters jump to the big screen.

But it remains to be seen if Blockbuster can jump over Netflix.
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