Blockbuster has announced that it has purchased Movielink, a movie download service the price of the deal has not been released.
The Wall Street Journal says the purchase price for Movielink was less than $20 million.
Movielink was started in 2002 by joint venture of Metro-Goldwyn-Mayer, Paramount Pictures, Sony Pictures entertainment, Universal Pictures and Warner Bros. Studios. Movielink was an effort by the studios to combat pirated movies. It’s estimated that the studios poured $100 million into the movie service but had difficulty attracting traffic.
“The studios’ goal with the Movielink service has always been to make digital entertainment content more conveniently, more widely and more securely available to consumers. This acquisition should further that goal,” said Jim Ramo, CEO of Movielink
“With Blockbuster’s ability to leverage its store network, online assets, and marketing expertise, Blockbuster should be able to grow the market for digitally-delivered entertainment content, and we believe that’s good news for consumers and content providers alike.”
Blockbuster said it plans to eventually make parts of the Movielink service available through its Web site. Blockbuster’s latest move is an effort to further compete with Netflix, which launched its Watch Now service back in January of this year.
“Blockbuster is committed to keeping pace with the changing needs of customers by offering them an expanding array of convenient ways to access entertainment content,” said Jim Keyes, Blockbuster Chairman and CEO. “
“Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster.”
