Blockbuster’s Set-Top Box Will Flop

Posted by Mashable in Monday, November 10th 2008

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After Netflix had introduced its streaming video service on the Roku set-top box, and after Netflix had teamed up with TiVo and Microsoft’s Xbox division and even debuted a Mac-compatible service to expand its reach into America’s home entertainment settings, Blockbuster, the once-was movie rental giant that continues to lose relevance in an increasingly convenience- and price-conscious market, is said to be readying the launch of a net-connected device of its own this holiday season.

It’s probably too late.

Netflix is King

We should wait until the product arrives in consumers’ hands before making any firm judgements, of course, but there’s no escaping the truth that Blockbuster has done little to make America want to give it some mojo once more. Netflix ran circles around the greybeard in the DVD-by-mail market. I sense the same will be the case in the budding movie download and streaming market.

Apart from a shift in its customer service support process, as well as a bit of noise about a premium charged for HD rentals, Netflix has done little to really drive users away from its catalogue. And while there’s always been demand for more film titles delivered on-demand via the company’s streaming video servers, the fact is that it is continually improving, and the quality of HD streams now available to select users has impressed critics.

Blockbuster, meanwhile, purchases its video download service MovieLink and has done little with the acquisition other than introduce a concept to install movie download kiosks within its brick-and-mortar chain of locations. Not a very proactive use of time, you might say.

A Continued Need to Compete

Still, Blockbuster has little choice to do anything but proceed with this launch, whatever the device might be. (Whether it’s an inexpensive solution or a hybrid Blu-Ray setup, Blockbuster will not say.)

Mind you, on top of the requisite hardware factor, the only saving graces the company might have at this point are:

1. Aggressive pricing,

2. A complete download option in the mode of Amazon Video on Demand and Apple’s iTunes service for the Apple TV,

3. A vast library of material to choose from. This is by far the most important of all.

The chance that Blockbuster will deliver on fronts 1, 2 & 3: slim to none.

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