Blockbuster Launches Set-Top-Box Video Service With 2Wire Device
There has been talk for months that Blockbuster, Inc. might be following the likes of competitors Netflix, Apple TV and others and enter the set-top-box video on demand market in a bid to stay relevant beyond its imposing, yet increasingly outdated appearing network of brick and mortar stores, and that is just what the Dallas-based video rental giant has done. The result is the Blockbuster OnDemand system and its MediaPoint Digital Media Player manufactured by 2Wire.
OnDemand is designed to take advantage of the digital rights to 6,000 or so titles that came with Blockbuster's 2007 acquisition of Movielink, plus eventually the rest of Blockbuster's catalog, in a way their existing PC download service has not been able to do. The OnDemand system utilizes 2Wire's MediaPoint Digital Media Player. Unlike Netflix's streaming video service which works with a number of purchasable devices, including Roku, two Blu-ray options, Microsoft's Xbox 360 and next month, TiVo (Series3, HD and HD XL), Blockbuster is offering the 2Wire device for $99 for what is termed "a limited time," when 25 video titles are pre-purchased. Additional titles are purchased a la carte for between $1.99-$3.99 and require a standard Blockbuster rental account with credit card on file, but not a monthly membership fee. Beyond a possible overall price difference for movies (for example Netflix allows for an 'all you can eat' scenario through its three unlimited monthly plans), the real difference here is in the video transmission method and the number of titles available. Again, using Netflix as a foil, the competition streams video through a broadband connection allowing for nearly instantaneous viewing, but viewing that can possibly be interrupted by a glitch in a user's Internet connection. OnDemand uses progressive playback via a broadband connection, and storage up to 30 days via SD card. This is a download technology, which ideally ensures consistent video quality even when disconnected from the Internet, but could make for longer wait times depending on the speed of your connection. Blockbuster recommends connection speeds of 1.5 Mbps or better in its manual to the service and insists that viewing can start before the download is complete. Regarding title availability, Netflix offers 12,000+ titles, where as OnDemand is launching with about 2,500 of what it calls "the best, biggest movies available." with a limited number of HD titles, but promises more to come. That's a promise that must be kept.
It's only been a few days, but taking a look at Blockbuster's stock price today and over the last year (not often over $1) they could REALLY use a win here. They've taken a big risk in going it alone and not working with hardware providers the way Netflix and others have. They have got to be taking a loss on each unit shipped. In a sense this seems odd, seeing that other players like Sony's PlayStation 3 will definitely be coming to the market soon. But for now Blockbuster had best do themselves a huge favor and get their full catalog going forward online VERY soon, and perhaps think about offering a subscription model if they hope to compete. Of course the other side of this is that the more successful they are, the more they will impact their brick and mortar business, but if they hope to survive the digital delivery revolution in the video rental industry, that will be a hit they will have to be willing to take.
I've seen no complete specs on 2Wire's MediaPoint Digital Media Player, but the manual for the OnDemand system as a whole can be accessed here on pdf format. Click on the image above for a look at its digital audio, USB and component, composite and HDMI video ports.
--Tom Milnes
Chris B on November 26, 2008 at 04:56 PM
A D.O.A. idea. Content providers need to stop inventing boxes. The great thing about Netflix is that it can be accessed via their box, Xbox, some Blu-ray players, PCs, and Boxee, plus more in the future. The last thing I want is another box with a power cable and an HDMI cable that I don't have an input for.