Blockbuster Set-Top Box to Challenge Apple TV

According to the latest rumors, Blockbuster is preparing to go head-to-head with Apple TV with its development of a set-top device for streaming movies directly to TV sets. The service would take advantage of video-on-demand technology from Movielink which Blockbuster acquired last year for pennies on a dollar.

Movielink is the online video download service containing about 6,000 movies provided by major players including Universal Studios, Paramount, Sony Pictures, MGM, and Warner Bros.

In  an interview Thursday, Blockbuster spokeswoman Karen Raskopf said that Blockbuster can provide not only rental DVDs for stores but media content across multiple media channels:

We’re talking to numerous companies and vendors about products, services, alliances and initiatives that can help us achieve our mission to transform Blockbuster into a company that provides access to media content across multiple channels - from our stores, by mail, through kiosks, through downloading, through portable content-enabled devices - so it’s not surprising that there are rumors out there.

But Raskopf said to expect even more varied offerings from the company, including providing entertainment for portable devices.

We are certainly exploring our options. We’re really working to transform ourselves into a company that can deliver media content physically and electronically… For example, for physical content , DVDs especially with the emergence of Blu-Ray as the high definition format of choice, we certainly have an impetus to be involved in that. And we are interested in portable, enabled content devices so people can take their entertainment with them anywhere.

Blockbuster is expected to announce more details sometime this month.