Blockbuster Planning In-Store Downloads, Not At Home Streaming?

This is an interesting turn to the Blockbuster media streamer rumor we heard last month. The Hollywood Reporter says Blockbuster will be going for the in-store kiosk download scheme where customers can download a movie within two minutes onto portable devices (we're thinking iPods as opposed to USB hard drives).

The plan is to have a fee of about $10 a month as well as a free device, but the pilot test in the Dallas area will only work with Archos players. Individual movie rentals will be $3.99, but if you're going to have to go down to the store AND pay about the same amount for a movie as you do already, why not just rent a DVD? [Hollywood Reporter]

Update: Looks like we heard about this before. Well now it's official.