The Blockbuster Download Kiosk - Huh?

New ideas are flowing like water over Niagara Falls these days. Here is a new one from Blockbuster (you know, the rental video store chain) that has me and others scratching their head. Blockbuster Chairman and CEO James Keyes made the announcement of his plan at the Annual Stockholder's meeting earlier this week.

The plan, as outlined by The Hollywood Reporter, is for consumers to bring portable devices into Blockbuster stores and download movies, usually in about two minutes. Blockbuster expects to begin testing the kiosks, in about three weeks. Initially, the system will work only with Archos devices, but Blockbuster expects the kiosk to be an "open system" that is compatible with a range of devices. Keyes declined to predict how many titles will be available on the kiosk, noting that Blockbuster was still in negotiations with the major studios for content.

According to the story, "Keyes acknowledged that the kiosk pilot is likely coming well ahead of broad consumer demand for such services and should therefore only be seen as one additional distribution channel for the company as it tries to offer entertainment content whenever consumers want in whatever form they want."

So, let's try to figure this out logically: Amazon.com, Microsoft's Xbox Live, and Netflix already deliver movies directly to PCs...Netflix already has introduced a download box that sits on your TV...TiVo, Vudu, and Apple TV, as well as cable and satellite services offer video on demand to TVs...and electronic copies of movies are being sold alongside DVDs. So what makes Keyes think people want to leave their homes, then drive to a store with a laptop-size device to download movies from an kiosk?

Dear Mr. Keyes: people don't want to drive to video stores to download movies. Convenience is everything these days. That is why Netflix is whipping you in customer service and revenues. But, of course, this is the same company that wants to spend one billion dollars to buy a dying Circuit City chain.

I own this bridge on the east coast that I am dying to sell...