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Friday, March 6, 2009

Video Killed the Video Store

By Ryan Singel Email

Blockbuster_p2p The Blockbuster is dead, long live the blockbuster.

At least that's what the technology omens are saying.

The Wall Street Journal reported Tuesday that Blockbuster Video, whose shares are trading below $1, is seeking advice on how to file for bankruptcy. Blockbuster counters it's only trying to get help to restructure its debt.

No matter. The days of tromping to the video store to find the night's entertainment are past. Now the question is only how long will it be until walking to the mailbox to get a DVD is considered antiquarian.

Driving or walking to the video store to bring home less than a gig of data — data that may or may not even be in stock — just doesn't make much sense anymore.

At least not when compared to Netflix's easy ordering system, its recommendation engine, lack of late fees, deeper inventory and clever use of the Postal Service to have movies delivered quickly.

Blockbuster tried to keep up, with an innovative mail rental plan that let people trade in movies at the store as well, but the plan turned out to be too complicated and too late.

But even the notion of even leaving the room to get a movie, doesn't make sense if you have a fat internet connection and the willingness to explore some legal and less-legal ways to download movies to a computer.

Note that also on Tuesday, cable provider Comcast announced that it was rolling out "wideband" in the San Francisco Bay Area (including a 50 Mbps downstream offering for $140 a month) and doubled the download speed of its current basic plus service to 12 Mbps down for free. That marks the 10th urban area in the United States that the cable operator is offering real broadband.

Think YouTube, Hulu, NetFlix's streaming movies, iTunes and Amazon overpriced rentals on demand, as well as dozens of others striving — yet again — to find a way to stream Hollywood video across the internet.

On Wednesday, ZillionTV announced that by the end of the year it will sell a $50 internet-connected set-top box that will stream HD and standard movies and premium TV, letting people choose to pay for entertainment or watch ad-supported shows.

No one has created a popular computer-in-the-living room solution yet — which makes DVDs still very practical, but that's just details. Some company — or several — will and then the notion of leaving the house to get a movie to watch will seem as quaint as writing a check at the grocery store.

The only question is what will become of all those old Blockbuster video stores and their signature blue awnings? My money is on an innovative pizza delivery company with a blue logo to start up and take over where the DVD business died.

Because at least so far, the internet has not yet figured out how to deliver a pizza better than a brick-oven pizza place can.

Photo: RocketRaccoon/Flickr

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