January 11, 2008

Blockbuster Going Digital, Developing Flash Drive

Despite popular opinion forecasting an upcoming bankruptcy, Blockbuster is determined to move ahead in the world of movie rentals and is revamping their business model to eventually morph into a digital download giant.

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Blockbuster CEO Jim Keyes outlined the plan at the Citigroup 2008 Global Entertainment, Media and Telecommunications Conference on Tuesday, stating that in the first two quarters of this year we'll beginning seeing kiosks in Blockbuster stores that will allow movie downloads. The will be the first step in Keyes' plan to turn Blockbuster into "an entertainment convenience store." The kiosks will likely be a stepping stone on Blockbuster's way to offering a digital movie download service on the web.

Interestingly, when responding to a question about the potential of flash drives in movie download distribution, Keyes said "we are working on a flash drive ourselves...a micro SD chip for side-load capabilities into portable devices, and we’re working on direct download to a device itself.” We'll have to keep our eyes out for the Blockbuster flash drive in the future.

Keyes was bullish about Blockbuster's financial potential this year, citing high gas prices, the turning of the tides in the HD DVD/Blu-ray format war, the downfall of competitor Movie Gallery, and the lack of fresh television content thanks to the Hollywood Writer's Strike.

Via Video Business