The incredible popularity of YouTube has shown, if video is available on demand, people will demand video. Clearly Blockbuster agrees, as shown by its acquisition of VOD service Movielink.
Recently Blockbuster has been engaged in a bit of a battle with the Netflix service, which in addition to rivalling the formers postal DVD rental service, has also offered video downloads from its site.
Buying-out Movielink not only enables Blockbuster to acquire the video streaming technology used by the site, but also access to the rights for all its content, including films and shows from MSG, Warner Bros. and Paramount, which is better than the more limited offerings Netflix provides.
Considering the increasing number of people with high-speed internet connections these days, it isn't surprising that movie downloads have taken off as they have - even the BBC has finally managed to get its download service out the door, though it's still actually only a limited beta. BT offers a similar service, although using a set-top box, as opposed to a PC.
While Blockbuster has already cast its vote in the HD format war, it seems it doesn’t want to settle on just solid media in the long term, a move which shouldn't hurt the companies long-term prospects one iota.