The video rental company is planning to market a set-top device for streaming films directly to television sets in the home and is reportedly ready to make an announcement later this month.
"This is an exciting time. We think Blockbuster can provide not only rental DVDs for stores but media content across multiple media channels," Blockbuster spokesperson Karen Raskopf said in an interview Thursday.
Raskopf declined to confirm specific product details, but said much is afoot inside the company as it looks to reposition itself.
"We're talking to numerous companies and vendors about products, services, alliances and initiatives that can help us achieve our mission to transform Blockbuster into a company that provides access to media content across multiple channels -- from our stores, by mail, through kiosks, through downloading, through portable content-enabled devices -- so it's not surprising that there are rumors out there."
Blockbuster is not alone in its wish to deliver broadband video into living rooms. In January, rival Netflix said it planned to offer a similar product under development by LG Electronics. Apple TV currently allows users to rent movies from their living rooms.
Blockbuster is developing the set-top box from its Movielink offering, a Web-based video-on-demand service it bought last year that allows users to watch films from the major studios on a computer or a TV connected to a computer.
But Raskopf said to expect even more varied offerings from the company, including providing entertainment for portable devices.
"We are certainly exploring our options. We're really working to transform ourselves into a company that can deliver media content physically and electronically," she said. "For example, for physical content , DVDs especially with the emergence of Blu-Ray as the high definition format of choice, we certainly have an impetus to be involved in that. And we are interested in portable, enabled content devices so people can take their entertainment with them anywhere.
"There is a place for Blockbuster delivering both digital and physical content," she added. "We still see that Blockbuster can provide not only rental DVDs for stores, but media content across multiple media channels."