Following the lead of competitor Netflix, Blockbuster last week announced that it will begin offering a device that allows on-demand streaming.
According to the Associated Press, the device will connect to televisions and allow users to download videos for storage and viewing over high-speed Internet connections. The device will be produced by 2Wire Inc and will be similar to those made by Apple TV.
Blockbuster’s move is seen as one to keep up with Netflix, who debuted their on-set Roku devices earlier this year.Â
However, Blockbuster executives say that while they are closing some of their physical locations, they don’t expect this new delivery system to replace them right away.
“We think the stores will remain relevant to consumers for quite some time,” he said.
Blockbuster had previously been selling video downloads through Movielink, a service that it bought for $7.7 million last year. But Movielink option was primarily aimed at consumers who don’t mind watching movies on personal computers or portable gadgets with small screens.
With its latest step, Blockbuster is appealing to the larger audience that prefers watching entertainment on big-screen TVS.
To help get its next downloading box into homes, Blockbuster is selling it as part of a $99 package that includes 25 on-demand rentals. After that, Blockbuster will charge at least $1.99 for each downloaded video.
The pay-per-view pricing differs from Netflix’s “instant watching” service, which gives unlimited access to a library of 12,000 titles to any subscriber paying at least $8.99 per month for a DVD rental plan.
Blockbuster’s on-demand service is starting out with just 2,000 selections, but Keyes promises the movies will be of more recent vintage than Netflix’s instant-watching service.
“We are emphasizing quality over quantity because we think quality is most important for our customers,” he said.
Blockbuster began offering recently release films such as “Get Smart” and “Forgetting Sarah Marshall” with the service’s debut.  Currently, Netflix does not offer these films via its live streaming service.
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