There are tons of rumors flying around that are substantiated by little more than the fact that someone wrote them, that Blockbuster is working a new Set-Top Box to push movies out to. Some are calling it an Apple TV competitor, but I highly doubt it will be.
There are some quotes from a Blockbuster spokesperson that suggest they might be working on something like this, and there is probably a tipster or industry insider feeding the Hollywood Reporter all its information, but for now I’m calling it a rumor. If the rumors are true though, they are working on the device with MovieLink, a company that already offers and online VOD service, which Blockbuster bought not too long ago.
The spokesperson said that they are looking at making film rentals available by “mail, through kiosks, through downloading, and through portable content-enabled devices”, not a bad goal combining iTunes and RedBox in with their current business model which is part Blockbuster part Netflix, maybe they’ll steal a little from GameFly and start offering game rentals by mail as well. Honestly though, if it’s just providing movie content and/or the occasional TV show I don’t see how it will compete with the Apple TV which performs a broad spectrum of functions.