Blockbuster Consumes CinemaNow, Still Misses the Point

Still desperately playing catch-up, Blockbuster has struck a deal that brings its pay-per-view streaming service to anything that supports CinemaNow, which will now be known as a Blockbuster-branded service. But it's still no Netflix.

That means that all of the new gear we saw with built-in CinemaNow support at CES (like LG's broadband TVs and BD decks), as well as the Xbox 360, will be able to stream Blockbuster's service, But here, again, is the rub (the same one that made their dedicated streaming box from 2wire a dud as well):

For now, Blockbuster intends to rent digital video on a pay-per-view basis or sell the movies to own. Keyes, though, said the company hopes to develop a subscription plan for consumers who want unlimited access to Blockbuster's digital library.

Blockbuster sees an opening focusing on new releases that Netflix Watch Instantly doesn't have. But without an unlimited subscription plan, why would anyone not inclined to leave the house simply rent them from their cable company's DVR at around the same price? Yeah, I don't know either. [AP]