Blockbuster buys Movielink

August 9, 2007 | Matt Marshall | Comments |

movielink.jpgVideo rental company Blockbuster has bought the Internet video download movie provider Movielink, in its latest dash to compete with companies like Netflix and Wal-Mart.

Movielink, of Santa Monica, launched in 2001 and became the first service to offer legal downloadable movies and TV shows.

The price was a mere $20 million, according to WSJ, suggesting this was a fire sale — and a significant loss for its former owners, who had pumped $100 million into the effort.

Blockbuster is acquiring rights to show the films of Movielink’s previous owners, which include Warner Brothers Studios, Metro-Goldwyn-Mayer and Paramount Pictures, according to various news reports. Financial terms were not disclosed. The company’s other owners included General Electric’s movie unit Universal Studios and Sony Pictures Entertainment. Blockbuster is also an investor in a CinemaNow, which has thousands of film, TV and concert titles, and offers streaming videos, which Movielink does not.

Netflix, Apple, Amazon.com and Wal-Mart Stores have all introduced movie download services.

Next Story: Is Google going after Monster.com?
Previous Story: Parade Technology, a fabless chip company for video displays, raises $14.5M more

Bookmark and Share

Tags: ,

Photo of Matt Marshall

About the Author, Matt Marshall

Matt Marshall is editor and CEO of VentureBeat. Follow him on Twitter at @mmarshall, and follow VentureBeat on Twitter at @venturebeat.

  • Hi there Guru, I fell blessed that I found your post while searching for online movie download service. I agree with you on the subject Blockbuster buys Movielink. I was just thinking about this matter last Friday.
  • I think it's a very wise acquisition. It's a pretty solid way of ensuring the future of their business since when you don't diversivy in the movie rental business (or any other really) you're going to get left behind!
  • this article "Blockbuster buys Movielink" very great
    I agree with you on this article.