BLOCKBUSTER TAKES CONTROL OF NETFIX AND APPLE DIRECT TO TV PLAYER

Blockbuster on Tuesday launched its own direct-to-TV player, taking on rivals Netflix and Apple in time for the holiday shopping season.

The player was built in partnership with 2Wire, a company that provides software and hardware for delivering Web content to home TVs. The 2Wire MediaPoint player makes it possible for Blockbuster subscribers with a high-speed Internet connection to rent videos online and play them on their home TV.

To lure customers, Blockbuster is offering the player at no charge for people who rent 25 online Blockbuster movies in advance for $99. After the initial rentals, movies are available for prices starting at $1.99 each.

"The player is simple to use, delivers DVD quality video, and there's no monthly subscription commitment," Jim Keyes, chairman and chief executive of Blockbuster, said in a statement.

The player operates with either a wired or wireless Internet connection, has fast-forward, rewind and pause capabilities through a remote control, and delivers DVD quality viewing. Connecting to a home entertainment system requires users to buy their own cables.

The player is about the size of two boxes of movie candy. Movies can be played immediately or saved for later.

In offering a direct-to-TV player, Blockbuster joins rivals Netflix and Apple in trying to grab some space in the home entertainment center. Besides launching its own player in May, Netflix has been aggressively pursuing makers of DVD players to support its on-demand video service and has deals with Samsung Electronics and LG Electronics.

The Netflix player is built in partnership with Roku, a company specializing in digital streaming media technology. Beyond the cost of the player, Netflix subscribes can stream movies at no additional charge.

Blockbuster and Netflix also compete with the Apple TV, which connects via the Internet to Apple's iTunes music and video store. Through the device, people can rent movies and TV shows. The Apple TV has been available since last year.

While streaming and renting movies over the Web is small in terms of revenue when compared with DVD rentals, analysts believe that consumers eventually will turn to the Web for movies much like they have for music. Online music services have had a major impact on falling CD sales.


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APPLE SUED OVER iPHONE'S BROWSER

Apple's iPhone 3G is generally considered the best browsing experience on a smartphone, as consumers appear to love the ability to zoom and scroll with their fingers on the mobile Safari browser.

But that browsing experience is the heart of a new patent-infringement lawsuit filed by EMG Technology.

The suit claims Apple is infringing on an EMG patent that covers the "simplified interface of reformatted mobile content to provide optimum viewing and navigation with single touches on a small screen." EMG is seeking unspecified damages and an injunction against Apple.

Issued in October of this year, patent 7,441,196 includes 76 claims that cover the display of Internet content reformatted from HTML to XML on mobile devices. There are also patent claims that include technology for zooming and scrolling.

The patent was filed in November 1999, but the company only established itself this month. EMG said it didn't offer Apple a chance to license the technology before the lawsuit, and it currently has no plans to go after other smartphone makers that use similar technology.

Since Apple entered the cell phone business more than two years ago, it has been met with critical success. The iPhone has also been a major hit with consumers, as Apple has sold over 10 million units worldwide in 2008.

But the iPhone has also caused some headaches, as the 3G version has been plagued with reception issues, a British commercial was banned for being misleading, and the company is facing multiple lawsuits over the handset's connectivity and cracks in the casing.

Apple said it doesn't comment on pending litigation.


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