Blockbuster and TiVo Join to Deliver Digital Movies

With its lingering debt problems resolved for now, Blockbuster is pinning some of its hopes on a digital future. The struggling video rental chain will announce a partnership with TiVo on Wednesday to deliver Blockbuster's digital movie library over the Internet directly to the televisions of people with TiVo digital video recorders. As with similar deals TiVo has struck to make digital video services from Amazon and Netflix accessible from its set-top boxes, no money will change hands between the companies. But Blockbuster also said it would sell TiVos at many of its 4,000 stores in the United States, taking a typical retailer's cut of sales. The two companies plan a joint marketing campaign to promote the new service, which will start in the second half of the year.