Blockbuster's been trying all sorts of, um, innovative things to get more foot traffic in its stores, but thanks to a dastardly invention known only as "Netflix," that very task has proven exceptionally difficult. Now, it seems the flagging movie rental company is giving one more far-flung idea a whirl: movies on SD cards. Around six Blockbuster and Hollywood Video stores will soon begin offering titles on SD cards, though the included DRM only allows customers 30 days from the purchase date to view it, and once it's fired up, you've just 48 hours before it vanishes completely. Each rental will cost $1.99, and while we definitely see the benefit of renting something that you don't have to return, we're still skeptical that folks will be more willing to make even one trek for a card when Netflix brings it all to one's mailbox (and PC, etc.) for just $8.99 per month.

[Via FastCompany]

Microsoft's Xbox 360 may call itself the only console to stream Netflix, but all that could be changing -- and soon. As Netflix continues to pull in new subscribers (and cash flow) like it's no big deal, the company is apparently looking to spread its wings even further by integrating its wildly popular Watch Instantly feature into "a device already owned by a large number of consumers." Naturally, the most fitting candidates for that would be Sony's PlayStation 3 or Nintendo's Wii, though the company has yet to come forward with anything concrete. Just so know you, Netflix credits the Xbox 360's streaming integration as the main reason some 2.4 million customers have signed up since late 2008, so it's more than apparent that it loves the game console. Any bets for when this will go down, or are you just plugging your ears in order to avoid potential disappointment?

[Via Joystiq]

Hard though it may be to believe, the Roku has been rockin' the lives of Netflix fanatics for nearly 1.5 years, and if you were thinking an updated version was in order, you'd be on the right train of thought. Images delivered to us today prove that a refreshed iteration is on the horizon, with the Roku XR (model number N1101) retaining the same overall look and feel as the original but adding in niceties like 802.11n wireless support, a USB socket (presumably for loading up media locally) and a 2.5A power input (as opposed to 1.5A). You can also see that the dedicated reset button has been yanked and the bundled remote is exactly the same; in fact, we're told that the old remote controls the Roku XR sans issue. There's no word yet on a price or release date, but we're guessing we'll know significantly more prior to Christmas. Oh, and yeah -- you're not the only one thinking this is quite the underwhelming update, but hey, maybe it'll street for $9.99.

[Thanks, Anonymous]

Read -- Sony Pictures, Redbox Sign Movie Agreement (WSJ sub required)
Read - Studios Rethink Redbox (WSJ sub required)

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]

As depressing as it is to see an American icon come this close to collapse, is it really any surprise? While the world kept turning, Netflix kept reinventing itself and movies found their way onto the internets (legally), Blockbuster sat still... and that's putting things nicely. Sure, it tried the whole movie set-top-box thing, but no on will argue that it went about things the wrong way. In a recent SEC filing, the company made perfectly clear that there was serious risk that it wouldn't be able to refinance its crushing debt load in order to stay afloat for a wee bit longer; in fact, it noted that said quandary raised "substantial doubt" about its "ability to continue." 'Course, hampering its Total Access rental plan and promising less stock in-store doesn't exactly sound like a brilliant plan to be successful, but maybe yesterday would be the best time to completely revolutionize its business and go online only. Just an idea, is all.

Consider the "where are the HD rentals in iTunes?" question partially answered, now that 8.1.1 has brought the advertised functionality to the desktop according to its own release notes. Some iPod and iPhone sync issues have also been addressed, but we know what the people want. Unfortunately, even after installing the update none of the $5 rentals in high definition are anywhere to be found, only SD. The wait continues.

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.

One only has to look at Netflix's recent growth to see how successful it's been while branching out onto new disc formats and digital delivery. Still, the news that the $1 Blu-ray surcharge is kicking upwards next month based on how many discs you can have out at once is making many previously happy (or not-so-happy) customers rethink their status. Still, Blu-ray discs are more expensive and if you've been happy with Netflix's service so far, maybe it remains a good deal. After a couple days to let the news settle in pick one, and let us know why in the comments.

Ruh roh. In a move that will undoubtedly cause an incredibly raucous stir, only to fade away as movie renters realize that Netflix is still the best deal going, America's most adored by-mail rental service is hiking the price of Blu-ray rentals once again. If you'll recall, Netflix already implemented a $1 per month fee for Blu-ray customers back in October, and now it's looking to push that premium higher by around 20 percent across its pricing tiers. The company asserts that the increase (slated to hit April 27th and only applicable to BD customers) is due to it buying more titles on BD to "accommodate the increasing number of Netflix members who prefer renting movies on Blu-ray." In fact, nearly 10 percent of all Netflix customers are choosing BD now, and obviously these platters cost quite a bit more for anyone (even Netflix) to procure. Head past the break to see how big of a hardship this will be on you.

Looks like TiVo's gone all Switzerland on us by announcing plans to add support for Blockbuster OnDemand to its Series3, TiVo HD and TiVo HD XL boxes -- plus the older Series2 hardware that Netflix missed. Due in the second half of 2009, the marketing deal will put TiVo's on the shelves of local rental outlets and put Blockbuster's service in front of many new users. So far its $4 per movie SD fare has failed to impress, we'll see if it can keep up with the competition when they're on the same box, while TiVo's managed to carve out a position squarely in the middle of the digital download revolution, with Blockbuster, Netflix, CinemaNow and more already available, it could be the big winner in this streaming battle, full press release is after the break.

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.

After a small but vocal amount of Netflix users got the world thinking that it was pulling a Comcast and putting caps on computer-based Watch Instantly users, the outfit's Chief Product Officer Neil Hunt has come forward to clear the air. He makes clear that Netflix's aspiration is to "deliver to everyone the best bitrate that their broadband connection can support," also noting that congestion "could affect some users, but not others, at some times, but not always." He also notes that different titles and encodes for different playback device types "may come from different CDNs or different servers at a particular CDN, so they may have different paths and different bottlenecks." We'd encourage you to hit the read link for the full explanation, but we're already seeing enraged Roku users bark back by his dodging of the so-called out-of-sync audio issue that's evidently still present. We'll go ahead and warn you, Netflix -- you can't please 'em all.

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]