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.