Blockbuster Buys Movielink Downloading Service

[DudeAsInCool]

This is an interesting development. MovieLink had the backing of most of the major motion picture studios...and they pumped over 100 million dollars to get it rolling. It never really took off and now Blockbuster has bought it for next to nothing:

Is action better than inaction? Blockbuster buys Movielink for a song

After a long and tortured courtship, Blockbuster has finally snapped up movie download service Movielink for a relative pittance. Although the purchase price was not disclosed by either of the two companies, the Wall Street Journal has it pegged at less than $20 million.

If accurate, that price is a bitter pill to swallow for the big studios that backed Movielink, given that they reportedly have spent over $100 million for start-up, promotion, and operation costs since the site's launch in 2002. Movielink's lack of success has made Warner Brothers, MGM, Paramount, Universal, and Sony anxious to unload it; Movielink had been on the market for well over a year before today's announcement.

Read More@Ars Technica