Report: Blockbuster in talks to buy Movielink

Ever since it began offering consumers the then-innovative option to have their DVD rentals delivered by US mail, Netflix has been a major pain in Blockbuster's ass. And just when the retail giant finally began to leverage its brick and mortar locations to offer its own online subscribers a sweeter deal, Netflix swoops in and announces it's Watch Now feature: free streaming flicks for all. So it didn't surprise us one bit to learn that the Wall Street Journal is reporting on talks between the rental stalwart and 'veteran' download service Movielink, a deal that, if closed, would give Blockbuster easy entry into the nascent and exciting world of internet-delivered video content. Giving some weight to this rumor is the fact that BB CEO John Antioco has already expressed interest in offering a so-called 'triple-play' -- wherein consumers can get their movies in-store, by mail, or online -- along with the ongoing pressure from investor and board member Carl Icahn to return the company to its glory days. Movielink -- which is jointly owned by the major studios -- is said to be on the table for only about $50 million, although its significance to Blockbuster is probably much greater than that valuation. Watch Now, TiVo with Unbox, BTEN, and now this potential pairing -- these are exciting times, people, and once all the dust settles in this battle to pwn digital downloading, it's the end who user who's gonna benefit most.

[Via ZatzNotFunny]

[Ray-- @ Mar 1st 2007 11:56AM]

the faster we can bury blockbuster the better... they are now in trouble because people have a better option and they are reaping the result of all the crappy ways they bilked customers for years with rewind fees, late fees, and deceptive rental practices... even if BB gave out free popcorn with every rental i'd never go back.... never.... i love netflix and hope they continue to do very well at driving BB into the ground.... when you care so little about customers for so long its hard to turn on a dime and thats what their problem is...

[Dixonij @ Mar 1st 2007 12:05PM]

Wow... harsh much? Granted, Blockbuster has done a LOT of shafting the customer over the years, but their new program has a decided advantage over Netflix. I can get a free in-store rental and turn in my movies at the store. So not only can I get twice the movies I would other wise, I don't have to wait the extra 2-3 days I would if I were to mail in the movies. Oh well... just give me a download/streaming service that is simple, easy, and straightfoward to use and I'll be a happy customer.

[James Smith @ Mar 1st 2007 7:00PM]

I agree with you 100%, before Netflix, I hated Blockbuster. They would force you to rent a movie for a week when you would only watch it once, you have to return the movie before 12noon at some locations or its considered late, they would just ripoff customers at every turn. Now they give customers at bb online the option to get a free store rental? Thats so stupid, the whole reason I've had Netflix and continue to use it is because I don't like going to the store in the first place! I don't wanna go out in the elements to go stare at a wall of 100 copies of the same crappy DVD that I don't wanna watch! I'd rather wait the one business day just to get the movie that I WANT, on my DOORSTEP. Blockbuster thinks if it copies all of Netflix's ideas (even its site graphics in blue instead of red) it can beat them.

[SOCOMRAIDER @ Mar 1st 2007 12:55PM]

Agreed. I used to have Netflix, but then switched over the Blockbuster online. Sure people don't want to go to an actual store. But not only do I trade my mailed movie envelopes for free new releases. I also get two coupons a month that I use to rent video games with. Two coupons doesn't sound like much, but with the rental fee of $7.99 per game, it is well worth it. Taking movies back to the store has me going through so many movies, my online queue can barely stay over 10 items. With Netflix I would have to wait for the mail in day and the mail back day. With BB I can watch store picked movies while my online movies are in the mail to me. There is also no longer any late fees. I keep 2 day rentals for almost a week and don't get charged for it. You can tell BB is doing their best to compete. They are practically bending over backwards. But it is serving me well with free extra movies, no late fees AND video games!

[patchman @ Mar 1st 2007 6:38PM]

I also tried BB..but going to the rental store is a pain in the a@#. Long lines , new realeases are never in (renters keep them much longer now) so you end up walking the damn store for awhile before walking out with a catalog title , not worth it. Then they scan your movie in and instead of showing as returned the next day it still takes 2 to 4 days before BB sends the next movie, and cross your fingers on what movie they send you from your now available titles. I went back to netflix and now with watch now is very nice. Everything about Netflix is better quality. I enjoy they way they have it set up with user reviews , seperate queues for family members, sharing info w/ friends. I sure hope BB doesnt do a Microsoft by taking out a better service replacing it with a inferior product.Anyway this is my2 cents.

[philipx @ Mar 1st 2007 12:10PM]

I'm a BB subscriber and I have received a survey invitation from them about such a service.

You can't tell for sure as it seems like they were testing waters, but some figures from the survey were 2,500 movies in the beginning, play movies on 3 devices, mentions of portable devices, and the service being available as an add-on to current subscription for a "small fee".

[andy @ Mar 1st 2007 12:21PM]

I don't give a crap about any of this until I can go into a "New Release" section of my Tivo menu, look at trailers, and then rent a movie. Get a drink, sit back down, and watch that movie right then on my 50" plasma in my den.

That's when downloads will matter.

(obviously you could substitute 'tivo' for 360, or in the distant future ps3; execution, not platform is what matters)

Without fiber to the home though, this will probably also involve some sort of bittorrent client to get the b/w to do this.

[honkimon @ Mar 1st 2007 12:23PM]

neat!

[honkimon @ Mar 1st 2007 12:24PM]

Movielink rocks

[Charles @ Mar 1st 2007 1:54PM]

I agree with the comments that Blockbuster's Online program is great. Especially the part about getting a free rental with each movie you turn in at the store. I live only a couple of blocks from the nearest store so it is very quick and easy. Had to laugh about the person having a hard time keeping their queue full, I have the same problem. Actually had to drop down to the one at time plan from the 3 at a time because I ran out of movies I wanted to see immediately. Of course, that was after 87 in three months (I guess I was getting my money's worth).

Downloaded video is fine if you have the bandwidth and correct streaming options to your Home Theater, I suppose. But I would really miss all the special features that would be absent from a movie only download.

[Ben Sarsgard @ Mar 1st 2007 2:12PM]

Blockbuster's service actually works best as a SUPPLIMENT to Netflix. I have my standard 3-out netflix plan, but keep an additional $5.99/month BB plan. This gives me 2 movies a month, which I can return at the store any time for 2 more movies, plus a free movie print-out coupon. That's 5 movies a month for $5.99, that I use to fill in the gaps when Netflix hasn't sent me my next disc yet, or if I get the urge to see something specific on a Sunday afternoon.

[BenG @ Mar 2nd 2007 11:52AM]

I will never give my money to Blockbuster again - ever!

Here's a classic article that shows my true feelings about BB:

http://www.theonion.com/content/node/53239

[daddycool @ Mar 4th 2007 5:38AM]

I use Netflix even though it isn't necessarily better, it's just that it was their idea and big bullying Blockbuster copied it and is trying to steal it with their in store thing and price wars. I'm rooting for Netflix to eventually beat them.