Blockbuster Launches New Set-Top Box – Yawn!

In Blockbuster’s latest move to try to compete with rival Netflix, they have introduced their own set-top box which will bring movies directly to a user’s TV and provide access to on demand content. The MediaPoint digital media player by broadband device maker 2Wire is available to Blockbuster customers for $99 and includes 25 movies. After the initial 25 rentals, movies are available for $1.99 each to $3.99.

Why is this NOT going to help them in their rivalry with mail-order DVD giant Netflix?

For starters, Netflix’s membership fees are less than Blockbuster’s. I know Blockbuster offers the advantage of being able to drop movies received by mail at their brick-and-mortar locations but doesn’t that really defeat the purpose of getting movies by mail in the first place?

Secondly, Netflix already has their own set-top box, offered at the same price and does not charge “per movie” as Blockbuster will.

Finally, Netflix is already well ahead of the game as far as streaming programming via your television with the relationships they have with TiVo and Xbox. Because many people already have a TiVo and/or Xbox device, streaming movies through a Netflix membership is a no brainer.

It also seems as if Netflix will continue to offer additional opportunities in the future through other relationships.

So, Blockbuster, as usual you are a little late to the game. I’m still cheering on Netflix, whom I liken to David, to beat the mighty Goliath giant Blockbuster in the mail-order and now streaming video business.