Blockbuster to compete with Netflix Roku player with set-top box
By Mike Ferro
Netflix has been chomping away at Blockbuster’s market share for some time now. Blockbuster is planning on striking back this holiday by releasing a set-top player that streams movies. This box would directly compete with the Netflix Roku set-top player.
According to Home Media Magazine, Blockbuster is planning on releasing a set-top box that would take advantage of its on-demand MovieLink download service. The MovieLink download service is similar to the Netflix Watch Instantly feature.
After the release of the video-streaming Roku player, the demand for the device has remained strong. Blockbuster is planning on taking some of Netflix’s market share by releasing the device this holiday to directly compete with the Roku player.
Currently, there has been no announcement made as far as price and manufacturer is concerned. However, with Blockbuster finances looking a bit grim, some analysts have speculated that this might be a desperation move.
During the third quarter, Blockbuster experienced a net loss of $17.8 million and a 2.7 percent decline in total revenue. Blockbuster execs blamed this drop in revenue on the lack of new titles and the Olympics.
One advantage Blockbuster has always had over Netflix is its brick and mortar stores. Consumers could order a movie via Blockbuster.com and return it to the store to pick up a new title instantly. However, due to Blockbuster’s weak advertisement campaign, Netflix has been gaining ground and chomping away at the company’s market share.
I am curious as to what manufacturer Blockbuster has partnered up with to create the set-top boxes. It will also be interesting to see if Blockbuster’s huge gambit with the set-top box pans out in the coming months. It seems as though that Blockbuster has all the facilities to overtake Netflix easily, but with poor leadership, I am afraid that the company is in for some hard times ahead.
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November 10th, 2008
If they release a box its got to do high def out of the gate or they might as well not bother.
Hard to say if their b&m is an asset or a hindrance. Arguments easily can be made either way. I personally have Blockbuster and not Netflix, but will likely switch if PlayOn works with Netflix HD movies.