Blockbuster Inc. (NYSE:BBI) chief executive Jim Keyes made good on his recent promise of new digital alliances. The movie rental company announced Wednesday that it's
teaming with TiVo Inc. (NASDAQ:TIVO) to deliver Blockbuster titles to TiVo boxes. Under terms of the deal, Blockbuster's video downloading technology will be incorporated into TiVo DVRs, which will be sold at Blockbuster outlets and on the company's Web site. The companies plan to launch the service in the second half of 2009.
The alliance is part of Blockbuster's digital strategy to help it better compete with Netflix Inc. (NASDAQ:NFLX) and cable and satellite providers that offer video streaming and downloading. Keyes highlighted the strategy when
announcing fourth-quarter results on March 20. The company reported a loss of $357.9 million and a 12% decline in revenue, but Keyes said its push into digital would position it for recovery.
It's a strategy that co-founder and former chief executive of Hollywood Entertainment Corp. Mark Wattles believes in. In mid-March, Wattles offered a vote of confidence in Blockbuster when he
took a 5.7% stake in its former rival.
- Suzanne Stevens
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