DOW JONES NEWSWIRES
Blockbuster Inc. (BBI) will provide movies for download on
demand for some Motorola Inc. (MOT) mobile-phone users as the
video-rental chain looks for new revenue sources and tries not to
become obsolete.
Meanwhile, handset maker Motorola is also looking for new draws.
The company is banking on several phones powered by Google Inc.'s
(GOOG) Android mobile operating system to boost results, but those
devices will face stiff competition from Apple Inc.'s (AAPL) iPhone
and Palm Inc.'s (PALM) Pre.
Blockbuster has been struggling with the recession and the
consumer shift to online rivals like Netflix Inc. (NFLX).
Blockbuster senior vice president of digital entertainment Kevin
Lewis said, "People are increasingly relying on their mobile phones
to stay connected to the things they love the most - including
their favorite movies and TV shows." He added the integration of
the OnDemand service with Motorola's phones will provide users with
access to thousands of movies.
Blockbuster had said earlier this year it wanted to offer access
to its video library through a variety of electronic devices.
Shares of Blockbuster closed Monday at 70 cents and were
unchanged premarket, while Motorola's closed at $7.06 and haven't
traded. Blockbuster's stock is off 71% in the last year.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com
