Blockbuster has entered the movie downloads business in a big way with its acquisition of Movielink, a movie download website.
Blockbuster is also acquiring rights to show the films of Movielink's owners, which include Warner Brothers Studios, Metro-Goldwyn-Mayer and Paramount Pictures, it said. Financial terms were not disclosed.
"It immediately puts us in the digital download business," Blockbuster's chief executive, James W. Keyes, said. "Clearly, our customers have responded favorably to having other convenient ways to access movies and entertainment."
The purchase provides Blockbuster with a way to send movies straight into televisions and computers, omplementing its store and movie-by-mail operations, where it competes with Netflix.
In the last year, Netflix, Apple, Amazon.com and Wal-Mart Stores have introduced movie download services.
Blockbuster needed to expand its online offerings. Blockbuster's retail stores are still very popular but nobody really expects people to buy and rent DVDs for too many more years.
Blockbuster has entered the movie downloads business in a big way with its acquisition of Movielink, a movie download website.
