As depressing as it is to see an American icon come this close to collapse, is it really any surprise? While the world kept turning, Netflix kept reinventing itself and movies found their way onto the internets (legally), Blockbuster sat still... and that's putting things nicely. Sure, it tried the whole movie set-top-box thing, but no on will argue that it went about things the wrong way. In a recent SEC filing, the company made perfectly clear that there was serious risk that it wouldn't be able to refinance its crushing debt load in order to stay afloat for a wee bit longer; in fact, it noted that said quandary raised "substantial doubt" about its "ability to continue." 'Course, hampering its Total Access rental plan and promising less stock in-store doesn't exactly sound like a brilliant plan to be successful, but maybe yesterday would be the best time to completely revolutionize its business and go online only. Just an idea, is all.

Looks like TiVo's gone all Switzerland on us by announcing plans to add support for Blockbuster OnDemand to its Series3, TiVo HD and TiVo HD XL boxes -- plus the older Series2 hardware that Netflix missed. Due in the second half of 2009, the marketing deal will put TiVo's on the shelves of local rental outlets and put Blockbuster's service in front of many new users. So far its $4 per movie SD fare has failed to impress, we'll see if it can keep up with the competition when they're on the same box, while TiVo's managed to carve out a position squarely in the middle of the digital download revolution, with Blockbuster, Netflix, CinemaNow and more already available, it could be the big winner in this streaming battle, full press release is after the break.

C'mon -- you could tell from the product description that the 2Wire-built BlockBuster MediaPoint player would be a disappointment, now couldn't you? A full month and change after getting unboxed, the latest entrant in the surprisingly meaty movie set-top-box arena has been reviewed by the AP. You know things are headed south when the reviewer starts off by stating that "three similar devices he tested over the past two years were all better than the MediaPoint." In fact, he straight up called BlockBuster out for not being at least as good as units that came out years ago. What could possibly be so wrong, you ask? You can't fast-forward or reverse content until a download is complete. The on-screen interface is downright "unattractive," and it even looks blurry on HDTVs. The remote is said to be "cluttered with cryptic buttons." Oh, and the critic couldn't even figure out what content was in HD and what was in SD. We'd elaborate further, but there's really no need.

Oh, Blockbuster -- what will we ever do with you? After first launching that branded MediaPoint box that all of four people purchased, you're now waltzing into the digital distribution party a few months late. According to a somewhat ambiguous report issued this morning, the movie giant has teamed up with Sonic Solutions in order to "give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices." In other words, those kosher with downloading content via Sonic's existing CinemaNow products and the like can soon have Blockbuster material on their handhelds, laptops and LCD-equipped threads. At least initially, BB will still be selling this material on a pay-per-view type system, though a subscription model could be implemented (read: should be implemented) shortly.

[Via CNET]

Netflix streaming is one thing, but Vizio seems to be taking its new status as a premium HDTV manufacturer very well, with the new Connected HDTV platform featuring support for Yahoo! Widgets, Flash, Blockbuster OnDemand (!), Flickr, Pandora, Rhapsody and Accedo Broadband. Due Fall 2009, owners can feel free to go wired or 802.11n style to connect to any of these services in HD, if supported. Clearly missing? Yahoo!, Media Center Extender, but the 2H 2009 fight of Internet-ready televisions is on - set-top boxes better watch their back.

We're back, and better than ever! After a quasi-relaxing Thanksgiving break, the Engadget Podcast is on the scene and strutting like 1970's disco dancers. Enjoy the soothing sounds of Josh, Paul, and Nilay this week as they discuss Nokia's newest smartphone entries, the Peek email device, Blockbuster's foray into streaming movies, and lots and lots of personal stuff that no one has ever heard before.

Side note: Josh is suffering through mic problems and had to resort to his internal mic -- if you have any good suggestions for a USB mic or headset, let us know in comments! Otherwise, enjoy the 'cast!

Hosts: Joshua Topolsky, Paul Miller, and Nilay Patel
Producer: Trent Wolbe
Music: Snow

01:51 - Nokia N97 hands-on part II: the reckoning
31:18 - Nokia E63 hands-on
37:45 - Peek handheld: $49.95 for "today only"
51:08 - Blockbuster joins the movie set-top-box game with 2Wire MediaPoint player

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Each week Ross Rubin contributes Switched On, a column about consumer technology.

January 2009 will mark the first anniversary of Apple's switch in positioning Apple TV from something that transferred computer-based content to a PC to a video vending machine that allowed direct ordering over broadband. In doing so and cutting a few dollars off the price, the company became the leader in a small category of products exclusively focused on displaying networked content. However, it's been far from alone there. The installed bases of the PlayStation 3 and Xbox 360, which offer similar functionality, far exceed those of Apple's little box. Recently the long-delayed SlingCatcher came out of the gate, which -- with a little finagling on a PC screen-- can display virtually any video content available via broadband on a television using its SlingProjector technology.

Vudu, a startup that had launched a similar a la carte device, has pushed deeper into the custom installation channel as of late. And CinemaNow, which had partnered with HP on its MediaSmart televisions and standalone device, was recently purchased for $3 million by Sonic Solutions. The acquiring company likely has designs on using the service to support its at-home DVD burning technology QFlix.

And on the low-end from Roku -- the roots of which were as a developer of PC-stereo bridging products -- has come a nondescript box that streams movies from Netflix for $99. A year before MovieBeam finally had its plug pulled, its receiver device was available for even less than that.

The 2Wire-built MediaPoint box has a long ways to go before it's widely viewed as a formidable opponent to the Roku Netflix Player, Xbox 360 or the number of Netflix-enabled Blu-ray players. That said, we're always down for a fun unboxing, and this one's coming to us courtesy of Mr. Dave Zatz. Upon firing it up, he didn't have the greatest experience with Ethernet, but things seemed to get going with WiFi. Granted, he has yet to actually enjoy any material on this here movie STB, but that's likely because he was busy hosting up a litany of photographs for your enjoyment. Speaking of, the whole gallery awaits you in the read link.

Many may still be scratching their heads at why exactly Blockbuster decided to delve head first into the world of digital downloads this late in the game with such a weak (on paper, anyway) offering. CEO Jim Keyes recently sat down with E-Commerce News to clarify a few things, and here's the skinny. For starters, it's not using a pure "streaming" method on the MediaPoint; instead, it's using a "progressive download" in hopes of improving the quality of the experience for those without a pure, continuous connection. Next, it's solely relying on an à la carte way of delivering films in order to bring new releases to the home faster, and if you've taken a look at Netflix's online availability of those very titles, you'll start to see the difference. Potentially most revealing were his quotes on future endeavors, where he candidly admits that its download services will be coming to undisclosed Blu-ray players "by the first quarter of next year." Whether or not the public will actually view that as a selling point, however, remains to be seen.

[Image courtesy of CEOSmack, thanks Anthony]

We heard that Blockbuster's very own movie set-top-box would be on sale shortly, and for couch potatoes and cube dwellers alike, you can order yours right now from the comfort of your dilapidated sofa / Aeron, respectively. As we'd heard, you'll be asked to rent 25 On Demand movies for $99, after which you'll get the MediaPoint player for free. Not quite sure if that's really pulling the wool over anyone's eyes, but color us completely unsurprised that a company in such dire straights would risk embarrassment to give it a shot. So, is anyone going to buy in here, or is that "Order Now!" button going to sit unclicked forever?

[Thanks, Robert]

We've rubbed our eyes four or five times now, but the factual heat remains: Blockbuster -- of all companies -- has decided to dive headfirst into the movie set-top-box arena. We wanted to believe the rumors were false, but sure enough, it has joined VUDU, Apple TV, Roku and the Xbox 360 in the highly competitive market place for your digital download dollars. For a "limited time," the outfit will offer the 2Wire-built MediaPoint player for free with the "advance rental of 25 first-run movies, TV shows, foreign or classic films from Blockbuster On-Demand (previously Movielink) for $99." After that, rentals are $1.99 to $3.99 apiece, and a Blockbuster subscription is not required. The unit itself measures 8- x 8- x 1-inch and includes two USB ports, an SD slot, Ethernet / WiFi and an HDMI port, and it should be available at the company's website and in select retail stores very soon. So, are you interested in the à la carte approach?

Well, well -- what have we here? As Microsoft's Xbox 360 skyrockets up the list of most wanted movie set-top-boxes and units like the Roku Netflix Player hold the promise of incorporating HD downloads in the near future, along comes the flagging Blockbuster to put up a mild fight. In a move that's half baffling and half expected, the DVD rental company is reportedly looking to pump out a movie STB of its own for the holiday season. That's according to CEO Jim Keyes, who said as much on a recent conference call with investors. Unfortunately, he passed along no other pertinent information whatsoever, though he did mention a "Blockbuster-branded widget on Intel-manufactured chips embedded in IPTV monitors" for next year. Good luck Blockbuster, you'll probably need it.

[Via NewTeeVee]

It looks like the potential lovefest that might have been the Blockbuster and Circuit City mashup has drifted away as quickly as it appeared. "Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City," said Jim Keyes, head-pimp at B-Buster. We can't be sure what the result was with Circuit City shareholders or employees, but we're willing to bet it didn't look anything like that Best Buy rap video. One more time, after the break.

Oddly enough, the far-fetched proposal is apt to be accepted. Circuit City has reportedly solicited the services of Goldman Sachs to help "negotiate a deal," which will essentially put the troubled electronics retailer in the hands of someone else. As it stands, Blockbuster looks to be the most interested in picking up the pieces, with billionaire Carl Icahn (Blockbuster's largest shareholder) agreeing to finance the get-together. Of course, it looks as if Blockbuster may be the only outfit interested. Not like that's any surprise, however, as Best Buy itself is having to look to Europe to boost revenues with US consumer spending off from where it once was. The real question here is whether a Circuit City-Blockbuster combo would be the perfect concoction to turn things around for both flagging firms, or will we find that two sinking ships actually do go down faster when anchored to one another?

Just weeks after the rental giant announced an expanded dedication for Blu-ray and even tried selling HDTVs in a test location in Dallas, now the firm is attempting to boost profits by digging into the surging video game market. Presumably in hopes that rental junkies and casual gaming fans alike will actually venture into Blockbuster in order to buy their next Wii, DS, Xbox 360 or PlayStation 3, the outfit has announced a new focus that will push the retail video game / game hardware aspect in all of its US-based corporate-owned stores. This includes consoles, a more fleshed out array of games and all the accessories your wallet can handle. Heck, it's even offering up an exclusive 40GB PS3 bundle ($499.99) with the Spider-Man 3 Blu-ray Disc, a PS3 remote, Transformers (the game) and a rental card giving purchasers a free PS3 game / BD rental per week for 12 weeks. Color us completely enthralled.

[Via Joystiq, image courtesy of Portfolio]