Blockbuster To Offer Movies On Demand On Motorola Phones

   DOW JONES NEWSWIRES 
 

Blockbuster Inc. (BBI) will provide movies for download on demand for some Motorola Inc. (MOT) mobile-phone users as the video-rental chain looks for new revenue sources and tries not to become obsolete.

Meanwhile, handset maker Motorola is also looking for new draws. The company is banking on several phones powered by Google Inc.'s (GOOG) Android mobile operating system to boost results, but those devices will face stiff competition from Apple Inc.'s (AAPL) iPhone and Palm Inc.'s (PALM) Pre.

Blockbuster has been struggling with the recession and the consumer shift to online rivals like Netflix Inc. (NFLX).

Blockbuster senior vice president of digital entertainment Kevin Lewis said, "People are increasingly relying on their mobile phones to stay connected to the things they love the most - including their favorite movies and TV shows." He added the integration of the OnDemand service with Motorola's phones will provide users with access to thousands of movies.

Blockbuster had said earlier this year it wanted to offer access to its video library through a variety of electronic devices.

Shares of Blockbuster closed Monday at 70 cents and were unchanged premarket, while Motorola's closed at $7.06 and haven't traded. Blockbuster's stock is off 71% in the last year.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]