Blockbuster grasps for Set Top Box straw

Blockbuster is handing out Set Top Boxes (STBs) ....sez Engadget:

For a "limited time," the outfit will offer the 2Wire-built MediaPoint player for free with the "advance rental of 25 first-run movies, TV shows, foreign or classic films from Blockbuster On-Demand (previously Movielink) for $99." After that, rentals are $1.99 apiece, and a Blockbuster subscription is not required. The unit itself measures 8- x 8- x 1-inch and includes two USB ports, an SD slot, Ethernet / WiFi and an HDMI port, and it should be available at the company's website and in select retail stores very soon.

Ie Box $99 with 25 movies thrown in. The issue they face is that STBs have friction - it usually costs c $99 to supply one (equipment, logistics, transaction etc etc) compared to an Over the Top internet play, and most people already have one (or even two, plus a games console) so yet another is the last thing they want.

Its clearly an attempt to combat Netflix, who have gone for a multiple distribution channel approach, and no doubt is the fastest and easiest play. But in our view, Blockbuster would have been better off with a software player solution like BBC iPlayer and selling a black box to allow people to connect PCs to TVs. Lower cost, lower friction and with Blockbuster's better content portfolio a much smoother play, plus it takes a free ride over existing infrastructure.