Thursday, August 09, 2007

Blockbuster Snaps Up Movielink ... for a Bargain

The battle for positioning in the nascent -- yet inevitably huge -- market opportunity for Internet distribution of movies heats up with Blockbuster just announcing that it has acquired pioneering (yet never profitable) movie site Movielink. Terms of the deal were not announced -- yet, according to The Wall Street Journal, "a person familiar with the situation" said that the price tag was less than $20 million.

The major studios -- almost all of whom were involved -- launched Movielink with high hopes in 2002. But, the service never took off, despite a reported investment of more than $100 million over time.