Can Blockbuster on PS3 compete with Netflix on Xbox 360?

There is a rumor doing the rounds on the Web indicating that Blockbuster may be making its service available on the PS3 in the same way Microsoft partnered up with Netflix on the Xbox 360. If Sony does indeed partner up with Blockbuster, the service may give Netflix on the Xbox 360 a run for its money.

Last E3, Microsoft made a huge announcement about its new partnership with Netflix to bring Watch Instantly to Xbox Live. Blockbuster recently announced a new service called OnDemand, which is a revamped version of the old MovieLink service. The MovieLink service was Blockbuster’s version of Watch Instantly, where you could stream and download movies via PC.

With the new OnDemand service, users will be able to stream movies through a set-top box. According to MSNMBC, Blockbuster Chairman and Chief Executive Jim Keyes indicated that they are actively seeking an alliance with video game console makers and Blu-ray manufacturers.

There would be only two video game manufactures capable of this service, Microsoft’s Xbox 360 and Sony’s PS3. Since Microsoft already has an exclusive partnership with Netflix, it seems that the PS3 would be the likely candidate.

There are two distinct differences between the Netflix Watch Instantly service and Blockbuster OnDemand. Netflix Watch Instantly does require a monthly subscription to the DVD by mail service. On Blockbuster’s service, users without a subscription can download off OnDemand, א la carte.

Keyes also indicated that unlike their competitors [Netflix], users will be able to download from over 2,000 of the latest movies, such as The Dark Knight. The executive blasted Netflix by indicating that it would take competitors two to three years to even offer new movies like The Dark Knight through their download service.

However, the a'la carte model seems a bit inferior to the Netflix subscription model. I like the idea of paying $20 and getting unlimited movie downloads. Although, I can see the benefits of an א la carte service to consumers who only watch a couple movies a month.

Alas, I have my doubts that Sony will end up partnering with Blockbuster on the PS3. Sony has invested quite a bit into the video section of the PSN store and parenting up with Blockbuster will only provide fierce competition to itself. Sony has been aggressively adding movies to the PSN video store by signing on studios one by one as well as offering its internal library.

However, partnering up with Blockbuster would be a brilliant marketing move on Sony’s part, but considering how misguided I feel Sony’s marketing team is, I have doubts that they have the insight to see the benefits.

from: GameConsolesStore.com

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