Blockbuster to Launch Download to TV Service?

Andrew Wallenstein, a reporter for the Hollywood Reporter, says Blockbuster is developing a new service streaming movies directly to TV sets. Apple TV was first to introduce a similar set-top box and

Netflix also has said it is interested in doing the same.

The Blockbuster service would be an offshoot of Movielink, the online film service Blockbuster
acquired last year.

Wallenstein says the device probably is a stand-alone product akin to Apple TV, not software and firmware incorporated into another existing device.

Blockbuster says it also will develop mechanisms to deliver movies to mobile phones. The company also is developing in-store kiosks for movie downloading.

Some speculate that online streaming or downloading services will cannibalize Blockbuster's retail store sales, and that certainly is a risk. But there is also thinking that retail will continue to grow even as online downloading and streaming services proliferate. That, at least, is what researchers at Screen Digest now forecast.

Screen Digest argues that, by 2012, about $1 billion will be generated by one of two online business models. About two thirds will be new revenue, while a third will come at the expense of DVD spending in the United States and Western Europe.

The forecast is based on retailers' ability to offer a huge range of titles without worrying about shelf space or the traditional video supply chain. Consumers could burn their purchase onto physical media or bring media players with them and download at the retail site.