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Blockbuster Offers Video-On-Demand

Friday, September 22nd, 2000

Blockbuster Inc. and Enron Broadband Services have entered into a 20-year agreement to provide movies and games on-demand via the Enron Intelligent Network, a 15,000 mile fiber-optic network that reaches 32 points of presence nationwide.

Steve Pantelick, senior vice president for Strategic Planning at Blockbuster, says the company hopes to offer a full video-on-demand service in two markets in the next 12 months.
Customers of the service would be able to choose from a large library of movies and enjoy VHS quality or better with VCR control.

Blockbuster plans to offer a low-cost set-top box that streams content directly to a customer’s TV. The box will eventually have hard disk storage and download capabilities. Earlier this year Blockbuster agreed to launch a pay-per-view video-on-demand service on the Tivo interactive programming guide sometime on 2001. Also this year, Blockbuster announced a distribution agreement with DirecTV in which the DirecTV hardware would be sold at 4,000 Blockbuster stores nationwide.