As a part of its "transformation to a Multi-Channel Brand" Blockbuster continues to use its name recognition to reach new markets, simultaneously trumpeting the success of a partnership with CinemaNow, resulting in Blockbuster OnDemand on Samsung HDTVs, Blu-ray players, as well as other hardware and soon, Motorola phones, while also easing into the cable video on-demand arena. In deals with Suddenlink and Mediacom via their VOD provider, Avail-TVN, they'll start off slowly by rebranding parts of their VOD service under the Blockbuster name, do some cross-promotion and then eventually take their relationship to the next level by allowing customers to search the rental giant's Blu-ray and DVD library for movies that might not be on VOD right now. The old dog seems willing to try anything to get back on top, but alone or all together, it's tough to see these strategies restoring the customer base Netflix and Redbox continue to eat away.

Read - Blockbuster Enters Strategic Alliance With Cable Operators Suddenlink Communications and Mediacom Communications

Sounds like Google has found the best way to monetize YouTube yet, and it puts itself in a pretty competitive spot versus the likes of Netflix, Amazon VOD, and Apple's iTunes movie store. According to Wall Street Journal, the company's currently in talks with Lions Gate, Sony, and Warner Bros. studios over putting their content on YouTube for a rental fee, likely $3.99 -- the same price as Apple's SD movie rentals. Even more interesting is talk of getting some titles online day and date with the DVD releases. Some options could still be free with advertising, but as for paid content, Google's enticing studios over to their way of thinking with a proposed minimum fee of "just under $3 per title viewed." A three-month beta testing is apparently scheduled to begin soon among 10,000 Google employees, and after that? Well, here's hoping the G-Man manages to sign on some more studios and offer us the films in streaming HD.

Look out Redbox, Blockbuster is coming. The rental giant is expanding its test program with NCR, planning to deploy kiosks in all 57 Big Y locations in Massachussetts and Connecticut by September 3, with a familiar $1 per night pricing scheme. No word on any Blu-ray discs being tucked into these automated movie towers, and while 57 locations is hardly on the level of Redbox's thousands of self service locations, we wonder if this is just the beginning of a push to the "10,000 kiosks installed within 18 months" goal stated by NCR CEO Bill Nuti a year ago, but we suppose we'll know they're big time when the movie studios start suing.

A Reuters blog posting from Japan reports that even with strong Blu-ray DVR sales, discs are still tough to find on rental shelves and suggests that Japanese makers have been reluctant to commit to the format so far. We're Redboxing and Netflixing it up on this side of the Pacific so the (likely lonely) inside of a video rental store even in the U.S. is foreign to us, but perhaps some of our overseas living or traveling readers can tell us how the HD battle is going from their perspective?

Expect to see more Blu-ray discs on the shelf of your local rental spot (for the three of you that haven't gone Netflix yet), now that Rentrak has added Blu-ray discs from Screen Media to its revenue sharing program. Simply put, it allows retailers to obtain the titles for little or no up front cost, while the studios share a percentage of the rental revenue after that. Other recently added suppliers include Anchor Bay Entertainment, E1 Entertainment, First Look Studios, Magnolia Home Entertainment and Summit Entertainment, while the first flick planned to be available under the new deal is Lymelife, available September 22.

Finally, Canada is getting a legit digital download option, now that Zip.ca and Sonic Solutions have announced plans to team up on a movie service. Though short on details (according to the PR it is still "exploring a number of models," including a la carte and subscription) CEO Curt Millar's stated goal to become consumer's destination for online movie access should be bolstered by using CinemaNow, since its service is already supported on hardware from TiVo to PC to LG Blu-ray players and more, it shouldn't be too difficult to work with hardware already in customers homes or coming out in the future. Millar told Joystiq his company "would love" to follow Netflix's lead to console access, but don't run to your Xbox 360, PS3 or Wii just yet, Canucks, there's no partnerships to announce yet.

[Via Joystiq]

We're not saying it's all good news for Netflix, but even someone with our limited financial knowledge can tell that this quote from CEO Reed Hastings in its Q1 results means things are going pretty well: "We added more net subscribers than in any previous quarter in our history and grew year-over-year GAAP EPS by 76 percent." We don't have to know what GAAP EPS is (earnings reported according to generally accepted accounting principals, and in our Wikipedia-based financial opinion we're concerned this may not truly reflect the earnings of the company until we can evaluate the operating cash flow per share - but this isn't that kind of blog) to recognize the company has a hit on its hands with Watch Instantly, even while its biggest competition is struggling. After busting through 10 million subscribers in February, the company is up to 10,310,000, adding 920,000 to its ranks in Q1 alone. Other news from the earnings call: Streaming only subscriptions are still being "considered" but not planned right now, the company is rolling out a new machine to test discs for scratches and cracks, and the company's biggest threat, just like we discussed on the podcast, is the spread of rental kiosks. You can check the reports for the rest of the details but if, like us, you're more interested in finding out when more HD and surround audio are coming to the streaming service, you'll be disappointed, because they're not in there.

[Image courtesy of TooMuchNick / WireImage, via Hacking Netflix]

That's the word, with a small but vocal group of subscribers claiming their discs are repeatedly arriving with small cracks on their outer edges. It's unclear what might be to blame, even with the extra coating to prevent scratches on Blu-ray, they could still be susceptible to automated mail processing machines, manufacturing defects or perhaps a spontaneous game of mail Frisbee. The Mars Box blog experienced this issue back in '07 with the disc pictured above, but in the last few months reports seem to be picking up again. It's really too bad those extra costs can't buy tougher packaging like the cardboard slips GameFly uses, but Netflix told Wired the problem is "infinitesimally small" and changing shipping wouldn't be cost effective. We know plenty of you rent your discs, let us know, have you been afflicted?

[Via Hacking Netflix]

Read - The Mars Box
Read - Wired
Read - AVS Forum

2,000,000,000. That's how many movies Netflix has shipped out since coming on the scene in 1999. Lucky number two billion -- Nick & Norah's Infinite Playlist on Blu-ray) snagged Clay Shannon a complimentary lifetime subscription (guess he's not too concerned about the new, higher Blu-ray rates.) It took the company eight years to cross the one billion milestone, and only two for the next billion. While there's little indication of a slowdown in the two million movies shipped out every day from 58 distribution centers, we wouldn't be surprised if number 3 billion were just as likely to come as a download than anything else.

Clearly, having access to your Netflix queue on your iPhone just isn't intimate enough, and now the company is expanding its reach once more by announcing Facebook Connect integration. Officially, the integration "seamlessly links a Netflix member's account with his or her Facebook account," though with Facebook changing its layout every three month, you probably won't be able to find the Netflix bit by the time summer draws to a close. At any rate, Facebook Connect will extend members' movie ratings from the Netflix community to Facebook, and of course, Netflix subscribers can decide whether or not they want to take advantage. The idea here is for Facebook friends to yap online over ratings and such, and generally keep Netflix on the tip of their tongue at all times. Hit up the full release past the break for all the appropriate setup information.

You know what the last thing a losing company should do? Something that makes even more of its customers jump ship. As Blockbuster looks to cut costs and buy fewer DVDs from studios, the company is also hoping that Total Access customers don't notice a tiny change (posted in full after the break) in the fine print. Up until now, Total Access customers could swap their by-mail rentals in store for a DVD that didn't count against their maximum out-at-a-time number; starting right about now in most locations, "all free movie in-store exchange rentals will count towards the number of DVDs you are allowed out under your Total Access plan at any one time." Of course, it also removed the return date limitation on all movies rented in-store while still a paying Total Access subscriber, but clearly the cons outweigh the pros here. Anyone considering Netflix now that Blockbuster has pulled a fast one?

[Thanks, Michael]

Maybe we're way off our rocker here, but it seems like every quarter Blockbuster is trying something new to get its business out of the dumpster. We've heard everything from potential mergers to boosted rental prices to yes / no on enhanced digital delivery, and now we're hearing that it'll be slashing costs by offering less of what you want more of. While the company saw same-store sales increase 4.4 percent in Q4 and 6.4 percent for the full-year 2008, it still managed to post a $435 million loss on an impairment charge for the most previous ending quarter. In order to shave costs, we're hearing that it'll be buying fewer DVDs from studios and lobbying for "better revenue-sharing participation from movie studios and video games publishers." In reality, though, we see all of this as just a band-aid for a stupendously large gash; it's going to take a serious overhaul for Blockbuster to survive the next decade, and buying a few less discs ain't it.

[Via TomsPayde]

Redbox, the company made famous by its red movie rental kiosks, has been completely bought out by its majority owner: Coinstar. The announcement was made during the outfit's Q4 earnings call, and it's expected that the buyout was made in order for Coinstar to wallow alone in the windfall profits that are expected over the next few years. Speaking of profits, we're also being told that Redbox will start testing higher rental prices for BDs, much like Netflix has done, but obviously on a per-rental basis. There's been no word yet on just how high they'll push the Blu-ray rates above the standard $1, but you know you'll just suck it up and pay it. Not like you're reverting to DVD now, right?

[Via ZatzNotFunny]

Read - Buyout
Read - Increase in BD prices

Apple isn't the only one to run afoul of the UK's Advertising Standards Authority, now that one of Microsoft's recent ads (embedded after the break) promoting its video rental service has been banned. Challenged because it fails to mention the viewing window (24 hours after pressing play / 14 days after download,) the board agreed, saying users may be influenced to purchase on the basis of being able to download and keep movies, which currently they can't. Microsoft argued that the ad was too short to get into the details of its DRM requirements, but maybe next time they'll hire one of the fast talking individuals from oh-so-many pharmaceutical ads for the last second disclaimer.

[Via Joystiq Xbox & CVG]

Redbox -- the outfit that makes its ends by offering consumers $1 DVD / Blu-ray rentals in kiosk stations positioned at grocery stores, Walmarts and other retail outlets -- has let its CEO out of the corner office long enough to speak with VideoBusiness. With B&M rental outlets feeling the pain from by-mail / online alternatives, VB questioned whether Redbox's business model was viable. Gregg Kaplan noted that the model was indeed viable and profitable, harping on the fact that many families are redirecting out-of-home entertainment dollars to at-home entertainment. He's also publicly confident that the business will continue growing "at a brisk pace," and given that its market share currently sits at just 5% to 10%, it definitely has the room to grow. We have to say, Redbox has it pretty good. While many are too lazy to make a trip to the video store, it's actually convenient to grab a flick while you're out grabbing produce; hit the read link for the full interview.