Loading…
Thursday, July 31, 2014
Current Weather
Loading Current Weather....
Published: Wednesday, 8/8/2007

Blockbuster to buy digital movie download service Movielink

ASSOCIATED PRESS

LOS ANGELES Video rental chain Blockbuster Inc. said Wednesday it is buying the digital movie download service Movielink, giving it the online foothold it has long sought to compete with rival Netflix Inc.

Terms of the deal were not disclosed.

Blockbuster said it will continue to operate Movielink as a stand-alone service and eventually make elements of the service available through Blockbuster.com.

Movielink was launched by five studios in 2002, marking the first time that a large supply of recent, popular films was available for rental on the Internet.

The privately held service has struggled to gain popularity, even as it allowed the purchase of films and signed licensing agreements with all major studios and a large number of independent film companies.

Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster, chairman and chief executive Jim Keyes said in a statement.

Now, in addition to the entertainment content we provide through our stores and by mail, we have taken an important step toward being able to make movie downloading conveniently available to computers, portable devices and ultimately to the television at home, he said.

Blockbuster s Total Access service, which allows customers to receive DVD rentals through the mail, has about 3.6 million subscribers. Netflix has 6.7 million subscribers and also lets them download about 3,000 movie and TV titles directly to a personal computer.

Movielink was launched by the studios to stave off enormous losses coming from people downloading illegal copies of movies over the Internet. The company is owned equally by Sony Pictures Entertainment, Universal Studios, Paramount Pictures, Metro-Goldwyn-Mayer and Warner Bros.

Read more in later editions of The Blade and toledoblade.com



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.






Poll