Blockbuster gets new ammo in Netflix battle

Lee Stewart · 08-09-2007, 09:17 AM

http://www.afterdawn.com/news/archive/10678.cfm

Blockbuster gets new ammo in Netflix battle
9 August 2007 9:11 by vurbal

The video rental chain Blockbuster said yesterday that it had acquired the Internet movie provider Movielink to offer video downloading services to customers.

Blockbuster is also acquiring rights to show the films of Movielink’s owners, which include Warner Brothers Studios, Metro-Goldwyn-Mayer and Paramount Pictures, it said. Financial terms were not disclosed.

“It immediately puts us in the digital download business,” Blockbuster’s chief executive, James W. Keyes, said. “Clearly, our customers have responded favorably to having other convenient ways to access movies and entertainment.”

Blockbuster said this year that it might seek a partner in 2007 to start a video downloading service. Last year, the company introduced an online movie subscription plan to lure customers away from Netflix, the largest Internet movie rental company.

The two companies offer similar plans and have repeatedly lowered prices or modified services in an effort to win customers.

Unlike Blockbuster, Netflix has added Streaming video to their subscription plans. Netflix customers can stream a predetermined amount of video that increases with higher priced subscription plans.

Movielink doesn't currently offere streaming services. However, standard downloads are a better deal for customers with slower internet connections, as it gives everyone access to video with the same quality.

In order to stream movies from Netflix at full DVD Resolution requires an internet connection capable of sustaining 3Mbps downloads. Even broadband plans that advertise speeds that meet or exceed this requirement don't guarantee speeds in this range and frequently don't support maintaining them for extended periods.

Source: New York Times

**PFC5** · 08-09-2007, 11:36 AM

So blockbuster bought access to a business model that even the movie downloading companies say will NOT really take off for another 10+ years.

They are starting to sound desperate to jump start their stock prices huh?

unotis · 08-09-2007, 11:49 AM

Blockbuster has really worked hard at doing a plethora of really bonehead decisions.

I use to use them all the time but lately it seems they are in a hurry to run themselves into the ground.

fmw · 08-09-2007, 12:06 PM

The wait will be more than 10 years for some people. The only "broadband" available to us country dwellers is satellite and it is only faster than dial up some of the time. It is not fast enough to consider downloading movies. Real broadband won't be here for years if it ever gets here. The population is just to sparse to warrant the cost of stringing cable. I doubt I will ever buy movie downloads in my lifetime. I'll stick with Netflix for the duration as long they are around.

Lee Stewart · 08-09-2007, 12:50 PM

Everyone does realize that BBI bought Sony out on this. Sony owned I believe about 20% of Movielink.

And NF bought out Wal-Mart's DNL service with a piece going to WM. You can go to this page in their website and DNL but you are really doing business with NF:

http://mediadownloads.walmart.com/mm...3x!-1946803518

**PFC5** · 08-09-2007, 12:56 PM

Quote:

Originally Posted by Lee Stewart

Everyone does realize that BBI bought Sony out on this. Sony owned I believe about 20% of Movielink.

And NF bought out Wal-Mart's DNL service with a piece going to WM. You can go to this page in their website and DNL but you are really doing business with NF:

http://mediadownloads.walmart.com/mmce/jsp/storeHome.jsp;jsessionid=G7THPG55tNrQKf6889zq9prl0 QX04TvTpVTHDzGR6zLWMNyyP33x!-1946803518

That would help explain how the rental numbers fell into place for blockbuster to decide to only expand with BD into those additional 1450 B&M stores.

Lee Stewart · 08-14-2007, 08:14 PM

Blockbuster buys Movielink for $6.6 million

By Jennifer Netherby -- Video Business, 8/14/2007
AUG. 14 | Blockbuster, which first tried to buy movie download service Movielink for $70 million a year ago, paid just $6.6 million in an all cash deal last week when it finally closed the deal, according to filing today with the Securities and Exchange commission.

Blockbuster announced last week that it had acquired the movie download site, which was launched by five major studios in 2002. Those backers have reportedly sunk $100 million into the startup.

In its filing, Blockbuster said it bought the site from MGM On Demand Inc., Digico Inc., SPDE-MF Holdings, Universal VOD Venture Holdings LLC and WB-MF LLC.

The retailer's original $70 million offer for Movielink was rejected. In March, rumors surfaced that talks were back on, this time with a $50 million price tag.

It’s unclear exactly why the price slid so much in the last year.

However, during that time, more big name companies from Amazon.com to Wal-Mart have entered the download business. All the while, sales remain small.

Last week, Google, one of the first major companies to begin selling video downloads, said it would close its paid video download business.

http://www.videobusiness.com/article/CA6468934.html

08-09-2007, 09:17 AM	#1
Lee Stewart Behold - the future! Join Date: Jan 2007 Location: Albuquerque, NM Age: 58 Posts: 25,188	Blockbuster gets new ammo in Netflix battle http://www.afterdawn.com/news/archive/10678.cfm Blockbuster gets new ammo in Netflix battle 9 August 2007 9:11 by vurbal The video rental chain Blockbuster said yesterday that it had acquired the Internet movie provider Movielink to offer video downloading services to customers. Blockbuster is also acquiring rights to show the films of Movielink’s owners, which include Warner Brothers Studios, Metro-Goldwyn-Mayer and Paramount Pictures, it said. Financial terms were not disclosed. “It immediately puts us in the digital download business,” Blockbuster’s chief executive, James W. Keyes, said. “Clearly, our customers have responded favorably to having other convenient ways to access movies and entertainment.” Blockbuster said this year that it might seek a partner in 2007 to start a video downloading service. Last year, the company introduced an online movie subscription plan to lure customers away from Netflix, the largest Internet movie rental company. The two companies offer similar plans and have repeatedly lowered prices or modified services in an effort to win customers. Unlike Blockbuster, Netflix has added Streaming video to their subscription plans. Netflix customers can stream a predetermined amount of video that increases with higher priced subscription plans. Movielink doesn't currently offere streaming services. However, standard downloads are a better deal for customers with slower internet connections, as it gives everyone access to video with the same quality. In order to stream movies from Netflix at full DVD Resolution requires an internet connection capable of sustaining 3Mbps downloads. Even broadband plans that advertise speeds that meet or exceed this requirement don't guarantee speeds in this range and frequently don't support maintaining them for extended periods. Source: New York Times

08-09-2007, 11:36 AM	#2
PFC5 Super Moderator Join Date: May 2005 Posts: 28,336	So blockbuster bought access to a business model that even the movie downloading companies say will NOT really take off for another 10+ years. They are starting to sound desperate to jump start their stock prices huh? __________________ Denon AVR-887 Klipsch RP-5 Pwred Towers (mains) (525 watts peak each 12"Subs) All Klipsch RC-25(ctr),(2)SS1(surr),(2)SS1(rearSurr) Toshiba (2)HD-A20,PS3,BD35 For SACD/DVD-A Samsung HD-841 Panny 50pz80u plasma SETTINGS RCA HD50LPW162 50"DLP w/HD2+ SA 3250HD 47" LCD+Yamaha5790+HD-A1(bedroom) Harmony 680 + (2) 670s (amazing remote/support) Game room with Onkyo receiver & B&W Speakers The_Cable_Game Take the high ground and be happier

08-09-2007, 11:49 AM	#3
unotis UNOTIS Join Date: Jan 2005 Location: FLORIDA Age: 54 Posts: 3,347	Blockbuster has really worked hard at doing a plethora of really bonehead decisions. I use to use them all the time but lately it seems they are in a hurry to run themselves into the ground. __________________ B&K Audio/Video Receiver 507 Harman/Kardon TC30 universal remote Martin Logan Odyssey speakers Martin Logan Center Channel speaker Velodyne DPS-12 Powered Subwoofer B&W rear speakers Toshiba XA1, XA2, A2 HD DVD players Sony PS3 40 GB Panasonic TH-42PZ700U 1080p plasma Panasonic 34" Tau CT-34WX50 widescreen HD-ready CRT Monster Power Center Motorola Dual Tuner DVR/ HDTV capable Officially PURPLE HD DVDs = 105 Blu-Ray Discs = 45 with 5 on the way

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08-09-2007, 12:06 PM	#4
fmw High Definition is the definition of life. Join Date: Jun 2007 Posts: 946	The wait will be more than 10 years for some people. The only "broadband" available to us country dwellers is satellite and it is only faster than dial up some of the time. It is not fast enough to consider downloading movies. Real broadband won't be here for years if it ever gets here. The population is just to sparse to warrant the cost of stringing cable. I doubt I will ever buy movie downloads in my lifetime. I'll stick with Netflix for the duration as long they are around.

08-09-2007, 12:50 PM	#5
Lee Stewart Behold - the future! Join Date: Jan 2007 Location: Albuquerque, NM Age: 58 Posts: 25,188	Everyone does realize that BBI bought Sony out on this. Sony owned I believe about 20% of Movielink. And NF bought out Wal-Mart's DNL service with a piece going to WM. You can go to this page in their website and DNL but you are really doing business with NF: http://mediadownloads.walmart.com/mm...3x!-1946803518

08-14-2007, 08:14 PM	#7
Lee Stewart Behold - the future! Join Date: Jan 2007 Location: Albuquerque, NM Age: 58 Posts: 25,188	Blockbuster buys Movielink for $6.6 million By Jennifer Netherby -- Video Business, 8/14/2007 AUG. 14 \| Blockbuster, which first tried to buy movie download service Movielink for $70 million a year ago, paid just $6.6 million in an all cash deal last week when it finally closed the deal, according to filing today with the Securities and Exchange commission. Blockbuster announced last week that it had acquired the movie download site, which was launched by five major studios in 2002. Those backers have reportedly sunk $100 million into the startup. In its filing, Blockbuster said it bought the site from MGM On Demand Inc., Digico Inc., SPDE-MF Holdings, Universal VOD Venture Holdings LLC and WB-MF LLC. The retailer's original $70 million offer for Movielink was rejected. In March, rumors surfaced that talks were back on, this time with a $50 million price tag. It’s unclear exactly why the price slid so much in the last year. However, during that time, more big name companies from Amazon.com to Wal-Mart have entered the download business. All the while, sales remain small. Last week, Google, one of the first major companies to begin selling video downloads, said it would close its paid video download business. http://www.videobusiness.com/article/CA6468934.html