There is no mention of price or how this service will actually work. But let's think about this: to compete with Apple TV or Vudu, the device would have to cost around $200, and rentals of movies and TV shows should be around $3 to $4 each, which would be slightly cheaper than rentals of new releases from Blockbuster currently.
The device will join a growing roster of home video boxes which aim to bring broadband video to the living room. Blockbuster rival Netflix also has indicated that it will compete in this market with a similar device being created with LG Electronics. The device is believed to be a stand-alone product akin to Apple TV as opposed to embedding a Blockbuster-branded service in such existing devices as Microsoft's Xbox 360 or TiVo.
The big advantage Blockbuster would enjoy over Apple TV, Vudu,and TiVo seems to be selection, as the service would be an offshoot of Movielink, the online film service Blockbuster acquired last year that allows consumers to watch films licensed from the major studios on their computers. Movielink was created in 2002 by MGM, Paramount, Sony, Universal and Warner Bros. Blockbuster now has the online rights to about 6,000 movies, though there are restrictions on moving content beyond PCs and TV.
This is the most audacious attempt yet by Blockbuster to reinvent its brand as a digital delivery service, as it risks to undercut the viability of its retail operation. Their aim is to make their brand the major force online.
I still think they're kind of late to this party, though....
