Blockbuster Extends OnDemand to Samsung Devices
Consumer entertainment retailer Blockbuster Inc. is
continuing the expansion of its digital media services by partnering with consumer electronics manufacturer
Samsung. According to Dallas Business Journal, Blockbuster will deliver its OnDemand service through Samsung products including HDTVs and blu-ray players.
Blockbuster OnDemand allows customers to directly rent and purchase digital movies through home entertainment devices. In March 2009, Blockbuster announced a
similar partnership with TiVo making 10,000 film titles available for download by TiVo users. The Blockbuster download feature will be built into TiVo Series 2 and 3 units, TiVo HD and TiVo HD XL DVRs. Blockbuster already has similar deals with Vizio TVs and 2Wire media players, but TiVo was the first mass-market media playing device Blockbuster has enabled for download. Blockbuster will also sell Samsung blu-ray players with integrated OnDemand capabilities as part of the new partnership.
Other recent Blockbuster digital media activity
includes a pilot of an online video game rental program it is running in Cleveland, OH this summer with an eye toward national rollout by year’s end. The program allows certain customers to pay a monthly rental fee for the ability to select an unlimited number of video games online and have them sent by mail, one game at a time.
Online consumer entertainment retailer Netflix, a major Blockbuster competitor, has been
expanding its library of titles available for digital download and the number of playback devices that will accept its streaming content. Netflix has publicly said it will focus on digital content streaming this year. In April 2009, online retailer Amazon added
paid direct streaming of HD movies and TV shows to its Amazon Video On Demand digital streaming service.
Blockbuster is attempting to expand its digital media services in the face of
declining financial performance in its main business. During Q1 2009, Blockbuster reported drops in revenues, same-store sales, gross margin, and operating and net income. Blockbuster’s guidance for 2009 includes a prediction that same-store sales will be lower by an unspecified amount.
