As Blockbuster Inc. continues to slug it out with rival Netflix Inc., it’s staking its claims to differentiation and its future on a bid to be a multi-channel retailer and not just a DVD rental company. And in repositioning to a multi-platform strategy, the Internet and e-commerce figure to play a big role.

A recent overhaul to Blockbuster.com sets the stage for multi-channel offerings, CEO Jim Keyes is telling analysts this spring. For example, Keyes says that customers will be able to purchase movie downloads from Blockbuster.com by the end of the second quarter. The company also plans to experiment with digital downloads at kiosks in stores.

Blockbuster’s $6.6 million acquisition last year of Movielink LLC, which has an inventory of thousands of movies and TV shows, will facilitate the company’s ability to provide digital content to a variety of formats, including personal computers, portable devices, and, eventually, home TV screens.

Blockbuster also is using a marketing deal with Yahoo to generate more sales online and in stores, and it has announced plans to partner with Paramount Pictures and MTV Networks to offer exclusive digital content.

The company expects to spend some $130 million this year on capital projects including $40 million on information technology and web infrastructure upgrades.

“As new entertainment technologies emerge, consumer options multiply,” Keyes notes. “All of these initiatives underscore our determination to position Blockbuster as the only provider of media content across all platforms—in-store, by mail and by digital download.”

For those who says that the DL service is a few years away from being successful I really can't tell

A recent overhaul to Blockbuster.com sets the stage for multi-channel offerings, CEO Jim Keyes is telling analysts this spring. For example, Keyes says that customers will be able to purchase movie downloads from Blockbuster.com by the end of the second quarter. The company also plans to experiment with digital downloads at kiosks in stores.

Blockbuster’s $6.6 million acquisition last year of Movielink LLC, which has an inventory of thousands of movies and TV shows, will facilitate the company’s ability to provide digital content to a variety of formats, including personal computers, portable devices, and, eventually, home TV screens.

Blockbuster also is using a marketing deal with Yahoo to generate more sales online and in stores, and it has announced plans to partner with Paramount Pictures and MTV Networks to offer exclusive digital content.

The company expects to spend some $130 million this year on capital projects including $40 million on information technology and web infrastructure upgrades.

“As new entertainment technologies emerge, consumer options multiply,” Keyes notes. “All of these initiatives underscore our determination to position Blockbuster as the only provider of media content across all platforms—in-store, by mail and by digital download.”So it looks like Blockbuster will be chasing Netflix towards downloads.

Excellent. Nothing like a little competition to keep Netflix honest on pricing. :)

Competition is good for everyone.I'm glad BB stayed and didn't fold the tent.I
will say this if BB can come out and partner up with PS3 before Netflix it will for Netflix to partner with XBL service soon so I hope BB keeps the heat on.

Interesting analysis of Bolockbuster's move and the download market in general from TelephonyOnline.

Blockbuster’s movie-streaming move (http://telephonyonline.com/iptv/news/blockbuster-movie-streaming-0411/)

Long article, here is the end...

“There is a $94 billion US entertainment media industry,” Rosenberg pointed out. “Out of that $94 billion, roughly $4 billion right now is being delivered online via streams. That includes the actual content, audio, video, Internet downloads, as well as advertising. Somewhere between $3.5 and $4 billion – so a very small percentage, but it is the wave of the future. No one wants to get in their car and go to a brick-and-mortar if you can sit at home and be a slug. It is gradual, but looking at it over the next five years, we’re predicting about a 30% compound annual growth in that streaming content-derived revenue. Do you think the brick and mortars are doing 30% growth year over year? No. Not even close.”

Thats a rough article it makes you think twice about buying anything.

I can honestly say I have never watched a movie on my computer and never will.

I can honestly say I have never watched a movie on my computer and never will.

So apparently you cant DSL and never watched anything on your computer. Do you drive a car or are you against those as well and use a horse and buggy?