Blockbuser and CinemaNow are Friends, Netflix Probably Not Scared

In an effort to catch up with Netflix’s streaming operation, Blockbuster partnered with 2Wire in October 2008 to market the MediaPoint, a $99 set-top-box that offered movie rentals for $1.99 to $3.99 a pop. The device was met with a lukewarm reception amongst consumers who has heard this story before from the likes of Apple, Vudu, and their cable providers.

But today Blockbuster stepped up its game, if only by a bit. The brick-and-mortar rental giant has forged a partnership with Sonic Solutions, owner of video delivery service CinemaNow as well as Roxio, a manufacturer of digital media applications. The alliance will put Blockbuster on a wide array of devices compatible with CinemaNow and allow consumers to burn purchased movies to DVD thanks to Roxio’s digital rights management abilities.

All in all, it’s an impressive variety of features, beating Netflix on the functionality and flexibility front. But there are two things that keep this from being a truly meaningful development in the world of digital movie rentals.

1) It ain’t cheap. The $8.99 that gets you unlimited access to Netflix’s streaming service for a month will get you only a few rentals from Blockbuster. However, Gizmodo reports that Blockbuster Chairman Jim Keyes said that a subscription plan may be on the roadmap. We’ll see…

2) It doesn’t bring much to the party that isn’t already here. Sure, CinemaNow offers unique compatibility with portable media devices like the Archos players and Samsung P2, but otherwise the ability to rent and buy DRM-protected feature films is already offered by other established brands in more prevalent media ecosystems.

Still, this is a step in the right direction for Blockbuster. They have a brand that is regarded by many as the place for movie rentals and that’s a powerful position for them as they try to evolve their model. As for CinemaNow, being BFF with Blockbuster will help drive traffic from those who may have never considered their service otherwise.