The video game and movie rental giant Blockbuster made interesting comments found in the latest 10-K filing with the Securities and Exchange Commission (SEC) today.

The company warned, “Over the next 12 to 18 months, we expect to continue facing the challenges of the macroeconomic environment, increased industry competition and fragmentation,”

Blockbuster recently has experienced a significant decline in total revenue as consumers shift to different more efficient and cost effective channels from competitors to get their movies.

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Blockbuster has teamed up with 2Wire to enter the home movie streaming market. Consumers will be required to purchase the MediaPoint player (its not even HD) which costs $99 and includes 25 movies. You can also stream content over your PC with WiFi, but the machine storage wasn’t disclosed. The MediaPoint player also has HDMI, component and composite video ports. Blockbuster also has an on-demand service where users can stream movies for $1.99 or directly download movies onto PCs for up to $3.99 per movie.
Blockbuster is a bit late coming into this space, but it is very important that it diversifies into this market as movies and media converge onto personal home electronics and the internet. The biggest problem I think Blockbuster faces is getting people to dish out all that money to purchase their MediaPoint player. Why would you pay for this especially if you already own an xbox 360 where you can easily stream movies right from your xbox from Netflix without any other equipment? Via