Blockbuster Prepping Set-top Box?

According to the Hollywood Reporter, movie rental chain Blockbuster is prepping a set-top box to stream movies directly to home TVs.

According to the Hollywood Reporter, struggling video rental chain Blockbuster is working on a set-top box that would stream movies and other video content directly to users’ home televisions. The device could be announced as early as this month, and would an offshoot of the Movielink movie download service Blockbuster acquired cheaply in August 2007.

A Blockbuster spokesperson characterized the story as a “rumor,” noting that the company has been talking to numerous companies about possible products and services, and noted that Blockbuester is committed to delivering content across multiple channels, including physical rentals, downloading, portable devices, by mail, and via in-store kiosks. Blockbuster did say it plans to have Movielink integrated into its its Blockbuster.com site by the end of the second quarter of 2008.

According to reports, the device would be a standalone item akin to the Apple TV, rather than a software-only add-on to other set-top boxes or game consoles such as the Xbox 360, digital or satellite cable services.

The Movielink acquisition gives Blockbuster online distribution rights to about 6,000 movies from MGM, Paramount, Sony, Universal, and Warner Bros.