Blockbuster to launch on-demand web video rentals

Video rental chain Blockbuster is launching a new web-based on-demand video rental service in partnership with Samsung Electronics America in an attempt to better compete with rivals Netflix and Amazon.com. Blockbuster rentals will cost between USD1.99 and USD3.99 for a 24-hour viewing opportunity, and the service will be delivered over high-speed internet connections.

Blockbuster's OnDemand service will be integrated into new Samsung HD TVs, home theatre systems and Blu-ray players, along with some older models through software upgrades. Blockbuster will also sell Samsung products in its stores and through its website.

Blockbuster's stores have lost favour in recent years among tech-savvy consumers who want to access videos instantly. Blockbuster is attempting to diversify its offering, to include mail rental, kiosks and video streaming services in partnership with TV maker Vizio and digital video recorder firm TiVo.

Blockbuster's SVP of digital entertainment, Kevin Lewis, says the company is likely announce 10 to 15 similar partnerships within the next year. "We believe that just as we are the leading offline rental company, we should be the leading online rental company," he says.