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March 25, 2009

Blockbuster partners with TiVo in an effort to save business

blockbuster-tivo.jpgI've long thought that Blockbuster would eventually go under, but luckily it was granted a temporary reprieve last week when it was granted an credit extension until September 2010. Given this extension was granted by its two largest lenders means a least a few shot-callers have some confidence in the business, but I'm still not sure. But if the partnership with TiVo, announced this morning, is the first in a long line of moves to revamp its business model them maybe, just maybe, Blockbuster will have a chance.

The once-popular video rental service has signed an agreement with TiVo to deliver its digital movie library directly to the television sets of TiVo owners with a broadband connection. No money will exchange hands in this part of the deal, but Blockbuster says it will sell TiVo's in most of its 4000 US stores for which it'll grab a cut of sales revenue. Unfortunately though, only 800, 000 TiVo owners have a broadband connection to their TV's, limiting the reach of the Blockbuster on Demand content through this partnership. And the company says both it and TiVo will market the heck out of it which will likely cost a fair chunk of change. We'll have to see what happens, but I'm not convinced yet that Blockbuster can turn things around.

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Posted by Justin Davey at March 25, 2009 7:59 AM

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