Blockbuster’s new plan- Buy Movielink

By Vivek | March 1st, 2007 at 09:58 am ET         

Blockbuster is planning to buy movie download service Movielink for $50 million, according to MarketWatch. Blockbuster seems to be the last of all the major companies to think of such a move. Netflix is already carrying out beta of its movie streaming service to be launched Q2/Q3 of this year. On the other hand Amazon recently made deal with TiVO to get a better handle of the TV market instead of targeting only the PC users. Apple, Microsoft, Walmart are just of the other companies looking to grab major chunk of the market share from Netflix and Blockbuster as users finally think of moving towards online movies.

In my opinion, if this deal goes through Blockbuster will have an edge over Netflix ’cause Movielink is a movie download service unlike Netflix which is planning to stream movies. Off course Netflix spending big bucks in building it’s system(same goes for Movielink) to make sure movies reach the users in a true streaming fashion. Wider FiOS rollout to alleviate the bandwidth problems might also be on Netflix’s mind but that is few more years to go and would work good for everyone besides Netflix.