Blockbuster and Tivo ave announced a partnership whereby Blockbuster (BBI) will begin selling Tivo (TIVO) DVR boxes and later will begin to supply on-demand video to Tivo customers through those boxes.
Tivo's revenues have actually been declining of late as cable providers have their own DVR capability. Blockbuster (10-year chart of BBI's Bataan Death March included) is fighting for survival. In terms of watching movies, what Blockbuster is really competing with at the younger end of its customer spectrum is file sharing and piracy - why rent a movie when you can find it for free?
I'm very interested to see how the file sharing angle shakes out. If I own a movie, should I be able to lend it to you? I think so. Should I be able to lend it to 1,000 people? Probably not.
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