Best Buy, Blockbuster to download

Lionsgate confirms deal with companies

Few industryites have doubted that Best Buy and Blockbuster would find their way into the movie download biz soon, but confirmation came Thursday from one of their studio partners.

In a conference call with analysts Thursday, Lionsgate CEO Jon Feltheimer listed a number of companies with which the indie studio has made digital distribution deals. Along with existing online videostore operators like Apple and Amazon.com, he included Best Buy and Blockbuster, neither of which has yet announced its plans in the space.

Comment to Wall Streeters was the first official confirmation that the electronics chain and No. 1 vidtailer are making digital deals with studios.

Competitors like Wal-Mart already have launched movie downloads and haven’t generated much revenue yet due to high prices and difficulty moving pics from the PC to TV.

It remains to be seen when Best Buy and Blockbuster will launch and how they will try to overcome these issues and try to stand out in the already crowded field.

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