“Blockbuster Offers Videos Via Internet”
Elizabeth Holmes, The Wall Street Journal
http://online.wsj.com/article/SB123189862045179953.html?mod=googlenews_wsj
Blockbuster has partnered with Sonic Solutions Inc. to offer movies for rent and for sale on a variety of broadband-connected digital devices, including personal computers, mobile phones, Internet-connected televisions and Blu-ray disc players. This came as a way for blockbuster to fight back against their lead competitor Netflix Inc. The senior vice president of digital entertainment for Blockbuster, Kevin Lewis, responded to questions about this new venture by saying the company hopes to offer its content in as many places as possible. Movies will also be able to transfer their choice of movie between digital devices. According to Tom Adams, president of Adams Market Research, the rental business was worth more than $9 billion last year. Internet on-demand video remains a smaller percentage of that $9 billion, but is has grown over the past year, from $28.4 million in 2007 to $88.5 million in 2008. Blockbuster accounts for roughly 40% of the $5.5 billion store business. Blockbuster hopes that making movie rental even more accessible to people the percentage of internet on-demand video will increase even more in the coming year.
Blockbuster is now competing in this new digital age we are living in. They are now allowing consumers to rent movies from basically any digital device they might own and transfer the movies between digital devices. Movie renting is becoming more and more convenient and hopefully Blockbuster’s move to increase their internet on-demand video rental sales will pay off in the long run and they will be able to beat out their newest competitor Netflix inc. we will all have to wait and see what happens in the coming year.
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