Since the purchase of video download site Movielink to video rental giant Blockbuster was announced earlier this year there has been a lot of speculation as to the financial state of the service. Despite heavy Hollywood ties with ownerr that included most of the major movie studios, the service was never able to make a serious impact with consumers, or a profit for that matter.
Despite the service's less than stellar history, Blockbuster has big plans for it. Originally purchased as part of their bid to compete with online video rental leader Netflix, the company has indicated that the Movielink platform will be used for content delivery to a number of platforms from mobile phones to televisions.
However, according to independent auditor PricewaterhouseCoopers, Movielink's track record raises "substantial doubt about the company's ability to continue as a going concern." However, Blockbuster may be looking less toward profitabliity and more toward competition. In recent months Blockbuster has had to change the terms of their Total Access online DVD rental plans, which had made them the first company to actually make an impact on Netflix subscriber numbers. Unfortunately it came at a high price, and the company's purchase of Movielink is anticipated to eventually tie into their rental operations. No announcements have been made regarding possible tie-ins between Total Access and Movielink, but if things go well Blockbuster's marketing could substantially increase Movielink's public visibility, while Movielink might provide serious competition for the Watch Instantly feature available from rival Netflix.
Source: Ars Technica
However, according to independent auditor PricewaterhouseCoopers, Movielink's track record raises "substantial doubt about the company's ability to continue as a going concern." However, Blockbuster may be looking less toward profitabliity and more toward competition. In recent months Blockbuster has had to change the terms of their Total Access online DVD rental plans, which had made them the first company to actually make an impact on Netflix subscriber numbers. Unfortunately it came at a high price, and the company's purchase of Movielink is anticipated to eventually tie into their rental operations. No announcements have been made regarding possible tie-ins between Total Access and Movielink, but if things go well Blockbuster's marketing could substantially increase Movielink's public visibility, while Movielink might provide serious competition for the Watch Instantly feature available from rival Netflix.
Source: Ars Technica
