As depressing as it is to see an American icon come this close to collapse, is it really any surprise? While the world kept turning, Netflix kept reinventing itself and movies found their way onto the internets (legally), Blockbuster sat still... and that's putting things nicely. Sure, it tried the whole movie set-top-box thing, but no on will argue that it went about things the wrong way. In a recent SEC filing, the company made perfectly clear that there was serious risk that it wouldn't be able to refinance its crushing debt load in order to stay afloat for a wee bit longer; in fact, it noted that said quandary raised "substantial doubt" about its "ability to continue." 'Course, hampering its Total Access rental plan and promising less stock in-store doesn't exactly sound like a brilliant plan to be successful, but maybe yesterday would be the best time to completely revolutionize its business and go online only. Just an idea, is all.

Looks like TiVo's gone all Switzerland on us by announcing plans to add support for Blockbuster OnDemand to its Series3, TiVo HD and TiVo HD XL boxes -- plus the older Series2 hardware that Netflix missed. Due in the second half of 2009, the marketing deal will put TiVo's on the shelves of local rental outlets and put Blockbuster's service in front of many new users. So far its $4 per movie SD fare has failed to impress, we'll see if it can keep up with the competition when they're on the same box, while TiVo's managed to carve out a position squarely in the middle of the digital download revolution, with Blockbuster, Netflix, CinemaNow and more already available, it could be the big winner in this streaming battle, full press release is after the break.

You know what the last thing a losing company should do? Something that makes even more of its customers jump ship. As Blockbuster looks to cut costs and buy fewer DVDs from studios, the company is also hoping that Total Access customers don't notice a tiny change (posted in full after the break) in the fine print. Up until now, Total Access customers could swap their by-mail rentals in store for a DVD that didn't count against their maximum out-at-a-time number; starting right about now in most locations, "all free movie in-store exchange rentals will count towards the number of DVDs you are allowed out under your Total Access plan at any one time." Of course, it also removed the return date limitation on all movies rented in-store while still a paying Total Access subscriber, but clearly the cons outweigh the pros here. Anyone considering Netflix now that Blockbuster has pulled a fast one?

[Thanks, Michael]

Maybe we're way off our rocker here, but it seems like every quarter Blockbuster is trying something new to get its business out of the dumpster. We've heard everything from potential mergers to boosted rental prices to yes / no on enhanced digital delivery, and now we're hearing that it'll be slashing costs by offering less of what you want more of. While the company saw same-store sales increase 4.4 percent in Q4 and 6.4 percent for the full-year 2008, it still managed to post a $435 million loss on an impairment charge for the most previous ending quarter. In order to shave costs, we're hearing that it'll be buying fewer DVDs from studios and lobbying for "better revenue-sharing participation from movie studios and video games publishers." In reality, though, we see all of this as just a band-aid for a stupendously large gash; it's going to take a serious overhaul for Blockbuster to survive the next decade, and buying a few less discs ain't it.

[Via TomsPayde]

Ah, the question we've been waiting for has finally arrived. With the economy leading more and more individuals to search for entertainment at home, many are wondering which movie rental service to sink their hard-earned dollars into. Take it away, Brandon:

"I'm looking to subscribe to either Netflix or Blockbuster for movie rentals, but I wanted some input from current users first. Which service is superior? Has anyone used both? I'm talking about the by-mail option, there aren't enough new releases available online for me to worry about. A little guidance, please?"

We know, it'll be difficult to quell your fanboyism here, but let's try to stick with facts and figures, okay? Has Blockbuster and / or Netflix treated you right / wrong? Let's hear it!

Got a burning question that you'd love to toss out for Engadget HD (or its readers) to take a look at? Tired of Google's blank stares when you ask for real-world experiences? Hit us up at ask at engadgethd dawt com and keep an eye on this space -- your inquiry could be next.

It's no secret that the movie lovers of the world are leaning more and more towards that instantly gratifying digital download option, and judging by Q4 numbers, we'd say Netflix has done a better job at exploiting that demand than rival Blockbuster. In a move we're honestly thrilled to see happen, the latter firm is apparently waking up and attempting to play catch-up. Here in the past week Blockbuster has hired on former Philips executive Kevin Lewis as Senior Vice President of Digital Entertainment, a spot that'll be responsible for "strengthening commitment to multi-channel entertainment delivery." Additionally, Robert Barr was selected as VP to Blockbuster.com, a move that signals the company's seriousness about getting its online division formidable. As easy as it is to kick the guy that's already down, no consumer in their right mind wants Netflix running this show solo -- there's a word for that type of situation, and it ain't good for your wallet.

[Image courtesy of Manda Mia]

Read - Kevin Lewis hire
Read - Robert Barr hire

C'mon -- you could tell from the product description that the 2Wire-built BlockBuster MediaPoint player would be a disappointment, now couldn't you? A full month and change after getting unboxed, the latest entrant in the surprisingly meaty movie set-top-box arena has been reviewed by the AP. You know things are headed south when the reviewer starts off by stating that "three similar devices he tested over the past two years were all better than the MediaPoint." In fact, he straight up called BlockBuster out for not being at least as good as units that came out years ago. What could possibly be so wrong, you ask? You can't fast-forward or reverse content until a download is complete. The on-screen interface is downright "unattractive," and it even looks blurry on HDTVs. The remote is said to be "cluttered with cryptic buttons." Oh, and the critic couldn't even figure out what content was in HD and what was in SD. We'd elaborate further, but there's really no need.

Oh, Blockbuster -- what will we ever do with you? After first launching that branded MediaPoint box that all of four people purchased, you're now waltzing into the digital distribution party a few months late. According to a somewhat ambiguous report issued this morning, the movie giant has teamed up with Sonic Solutions in order to "give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices." In other words, those kosher with downloading content via Sonic's existing CinemaNow products and the like can soon have Blockbuster material on their handhelds, laptops and LCD-equipped threads. At least initially, BB will still be selling this material on a pay-per-view type system, though a subscription model could be implemented (read: should be implemented) shortly.

[Via CNET]

Okay Yahoo!, we're sorry we teased, we give up, you win. After what certainly seemed on this end to be an endless run of HDTV manufacturers announcing support for the Widget Engine today -- and serving up a hefty slap in the face to Microsoft and others who've been moving the Internet to TV movement for some time now -- all we can do is look over the carnage. Signed up on the app side of platform formerly known as Konfabulator are content providers like eBay, MySpace, CBS, Blockbuster OnDemand (in its first off-2Wire MediaPoint appearance), Netflix, Showtime, USA Today and Twitter, while the Widget Development Kit has opened up to developers interested in putting their apps on the screens of millions. Hardware should street starting this spring from the likes of Samsung, LG, Sony and Vizio leaving the biggest question mark as how the competition and their clumsy external boxes can possibly respond.

Netflix streaming is one thing, but Vizio seems to be taking its new status as a premium HDTV manufacturer very well, with the new Connected HDTV platform featuring support for Yahoo! Widgets, Flash, Blockbuster OnDemand (!), Flickr, Pandora, Rhapsody and Accedo Broadband. Due Fall 2009, owners can feel free to go wired or 802.11n style to connect to any of these services in HD, if supported. Clearly missing? Yahoo!, Media Center Extender, but the 2H 2009 fight of Internet-ready televisions is on - set-top boxes better watch their back.

Missed out on those fire sales held right after HD DVD's funeral, did you? Fret not, as Blockbuster is looking to make the most of your HD DVD player purchase. As of now, the rental outfit is selling over 300 HD DVD titles at just $7.99 each, which gives you a perfect excuse to blow that Christmas cash before 2008 is even over. In related news, Frys is offering up an Xbox 360 HD DVD player along with HD DVD box sets of Heroes: Season One and Battlestar Galactica: Season One for just $49.99. Better hurry on that one, though -- the deal's up at the stroke of midnight.

[Via HighDefDigest]

Read - Frys deal
Read - Blockbuster sale

It's not tough to say what ails Blockbuster, but it's incredibly hard to see what will turn it around. As the world at large decided to pass up renting from brick-and-mortar locations in favor of by-mail renting or digital downloads, Blockbuster remains stuck in 1983. We already had a clue that it may be jacking rates up further to help with near-term financials, and now those increases are all but set in stone. CFO Thomas Casey noted at a conference in Santa Monica that it would be focusing on "boosting rental prices over broadening its digital delivery service," which is quite amazing given that the outfit just pumped out its own movie set-top-box not two months ago. Oh sure, digital delivery is a much smaller market than the DVD rental sector, but how exactly does Blockbuster plan on raking in revenue with higher prices? It's not like it's about to undercut Netflix.

[Image courtesy of Wired]

The 2Wire-built MediaPoint box has a long ways to go before it's widely viewed as a formidable opponent to the Roku Netflix Player, Xbox 360 or the number of Netflix-enabled Blu-ray players. That said, we're always down for a fun unboxing, and this one's coming to us courtesy of Mr. Dave Zatz. Upon firing it up, he didn't have the greatest experience with Ethernet, but things seemed to get going with WiFi. Granted, he has yet to actually enjoy any material on this here movie STB, but that's likely because he was busy hosting up a litany of photographs for your enjoyment. Speaking of, the whole gallery awaits you in the read link.

Many may still be scratching their heads at why exactly Blockbuster decided to delve head first into the world of digital downloads this late in the game with such a weak (on paper, anyway) offering. CEO Jim Keyes recently sat down with E-Commerce News to clarify a few things, and here's the skinny. For starters, it's not using a pure "streaming" method on the MediaPoint; instead, it's using a "progressive download" in hopes of improving the quality of the experience for those without a pure, continuous connection. Next, it's solely relying on an à la carte way of delivering films in order to bring new releases to the home faster, and if you've taken a look at Netflix's online availability of those very titles, you'll start to see the difference. Potentially most revealing were his quotes on future endeavors, where he candidly admits that its download services will be coming to undisclosed Blu-ray players "by the first quarter of next year." Whether or not the public will actually view that as a selling point, however, remains to be seen.

[Image courtesy of CEOSmack, thanks Anthony]

We heard that Blockbuster's very own movie set-top-box would be on sale shortly, and for couch potatoes and cube dwellers alike, you can order yours right now from the comfort of your dilapidated sofa / Aeron, respectively. As we'd heard, you'll be asked to rent 25 On Demand movies for $99, after which you'll get the MediaPoint player for free. Not quite sure if that's really pulling the wool over anyone's eyes, but color us completely unsurprised that a company in such dire straights would risk embarrassment to give it a shot. So, is anyone going to buy in here, or is that "Order Now!" button going to sit unclicked forever?

[Thanks, Robert]