Blockbuster Won't Give in; Bids for Circuit City

For years, it seemed like the writing was on the wall for movie rental outlets like Blockbuster. First, there was on-demand TV through cable services that essentially let you order a movie right from your couch. Then, there was nifty inventions like TiVo that made it really easy to record a movie at 4 a.m., then watch it whenever you felt like it. As if that weren't enough to put pressure on the traditional DVD rental business, out came Netflix, a company that let you order a movie online, and they'd deliver it right to your door!

Lately, however, it seems like Blockbuster is pulling out all the stops to ensure that the company isn't left in the dust as technology continues to move forward. We've already seen what happened to music retailers like Music World and Sam The Record Man that refused to change their business plans to keep up with the changing ways of music distribution. Blockbuster obviously wants no part in that when it comes to its business, and is making sure the company stays on the cusp of development.

The strangest move came today, when Blockbuster Inc. put in a bid to buy U.S. consumer electronics retailer Circuit City. Huh? You'd think that, if anything, it would be the other way around! But Blockbuster is offering more than US$1-billion for the mammoth CE retailer, stating that a combined company (worth approx. US$18-billion) would be "uniquely positioned to capitalize on the growing convergence of media content and electronic devices." Could we see Blockbuster stores now not only renting DVDs and video games, but also the devices needed to watch or play them? Or perhaps creating promotions whereby you receive a free movie rental with the purchase of a Blu-ray player from Circuit City? It might even be more than that.

Reports all over the 'net claim that Blockbuster is planning to launch its own set-top box that would allows users to stream movies to a connected TV, a la Apple TV. Content would reportedly come from Movielink's massive library, a company that Blockbuster purchased last year.

It looks like Blockbuster has finally bitten the bullet and realized that it needs to make bold moves in order to remain competitive, and not be eaten up by all the new players. In addition to its attempt to buy Circuit City and the rumoured set-top box device, Blockbuster has also been ramping up its Blu-ray DVD offerings to keep in line with consumer demands. It's even putting dedicated Blu-ray kiosks in store, demonstrating the quality of Blu-ray versus standard DVD.

Most people seem puzzled by Blockbuster's moves, but it's better than sitting back and watching other companies take over an area where you were once king. Kudos to Blockbuster for taking steps to improve, and for attempting to find interesting synergies that will add further value to its business. Sure, a consumer electronics retailer is very different from a DVD rental company, as many reports have pointed out. But maybe there's more synergy between the two than we realize. If, as I've argued many times, the content drives the hardware, it makes perfect sense for Blockbuster to grab a piece of the hardware pie to complement its diverse software offerings.

TV Content Going to the Web, Web Content Going to the TV...I'm Confused

The "hot" trend today is to take TV content, like popular shows, movies, clips, and even commercials, and make them available online. But it also seems that there's a rapidly growing trend to do the reverse: take Web (or just PC) content, like YouTube videos or family home movies, and make them available for the big-screen TV experience.

iTunes is the obvious example of the former, offering tons of movies and TV shows for download to the PC. But there are plenty of other sites and services that do much the same: YouTube, Joost, Miro, and Slingbox are just a few. The advantages to this are obvious: you can watch video on-the-go (in an airplane or train, for example) rather than being tied to your living room. In many cases, you're also able to load that video onto a portable device, like an iPod or other media player, for an even more "portable" and untethered experience.

But wait: now that we've perfected (albeit with nasty copyright restrictions) the TV-to-Web experience, the exact opposite trend is emerging, bringing valuable Web and PC content to the TV. Enter devices and services like AppleTV, Xbox LIVE Marketplace, and, most recently, YouTube, which has just partnered with TiVo (in the U.S.) to permit playback of its videos on the big screen via a new TiVo DVR and software upgrade.

While it appears that the Web is king, there's also an inherent desire to enjoy video the way we've become accustomed to doing. So while there is tons of cool, user-generated video online, and while you can watch your home movies on the computer screen, people still want to gather 'round in the living room and enjoy the fancy new big-screen plasma or LCD. On that same note, we've grown to understand that the Web can serve as a sort-of archival storage space for all kinds of neat video. If you saw a hilarious commercial on TV last night and want to share it with a co-worker, it's probably available online. If you want to learn more about a breaking news story that interrupted your fav show, there's probably video footage on the Web that provides additional information.

For someone looking from the outside in, this might all sound confusing. First you want to access TV on the Web, but then you go back to watching the TV in your living room anyway? I don't get it. But really, it's not an either/or situation. What consumers want is the ability to access all kinds of content everywhere. In other words, producers of content that's typically available through cable or satellite providers can benefit a lot from what the Web has to offer, and vice versa. It's almost a no-brainer proposition.

More Gifts for the Holidays

As I'm sure you can imagine, the magazine world lends itself to very timely deadlines, not to mention limited space within each issue. This means that, when it comes to a holiday gift guide, although I could fill an entire issue of here's how! magazine with the items I think would make great gadget gifts, I'm relegated to just a few pages (as is each other writer). Not to mention that, as Murphy's Law would have it, a cool new item always hits the market as soon as an issue goes to press.

We included a very extensive holiday gift guide in the just-released (literally hot off the press!) December Holiday issue of here's how! magazine. I covered the hot Gadget gifts, while editor Gordon Brockhouse wrote about his fav entertainment gifts; photo expert Peter Burian discussed his top picks in the digital imaging category; and self-professed PC geek, Frank Lenk, provided the latest and greatest in PCs, related accessories, and video gaming. Of course I'm not going ruin the surprise by revealing here what products were chosen. (If you're interested, pick up a copy at one of our participating retail partners; visit http://www.hereshow.ca/ for a list). However, as with jello, there's always room for more...

With that said, here's an appendage, if you will, to my here's how! gift guide: cool gadgets that would make great gifts for anyone (but especially the tech-savvy!) on your list:

TiVo: The company just entered the Canadian market, and many people want one just for the sake of getting one; even though they might already have a PVR from their cable or satellite TV provider. Why? 'Cause it's TiVo and it's supposed to be "cool". Although you can't record high-definition content with the Series2 model that will be selling in Canadian retail stores in time for this holiday season (bummer), you can still record up to 80 hours of standard-def content. If you don't mind that setback, along with the $200 price tag, go for it.

Blackberry 8800: I reviewed this phone a few months back, and loved it. Although I haven't yet jumped on the messaging phone bandwagon, this would be one of the models on my radar. It incorporates all of the standard Blackberry features, plus a media player, and the neat trackball for navigating menus. (Click Here, then click on the image to download the full issue of here's how! that contains a review of this smartphone on Pg. 89)

HTC Touch: Although I haven't yet played around with this phone (much less any phone from this relatively new handset manufacturer), there seems to be a lot of buzz about this model, in particular. Operating on the new Windows Mobile 6 platform, it serves as a smartphone with a neat, touch-screen interface. And, of course, it has some additional multimedia features that would appeal to the most tech-savvy friends and family members on your list.

Nintendo Wii: If you can get your hands on one this holiday season, Nintendo's family-friendly Wii gaming console will likely be an appreciated gift for kids, and even adults. It's great for fun parties (think of it as a modern-day Twister!); or even for those looking for a new, more motivating way to get in shape at home during the cold winter months. I tried my hand at the bowling game during the Wii's Canadian launch event last year, and it required just as much effort to play this virtual version as it does to actually bowl; but for the fact that the controller is much lighter than a 14-lb. bowling ball!

HD DVD Player for Microsoft Xbox 360: Speaking of gaming, like many other men in their 30s, my partner owns an Xbox 360 gaming console. To get these guys into the spirit of high-definition DVD, the HD DVD player attachment for the console is pretty much one of the most affordable options. However, you might want to wait it out and see which way this format war goes!

Sirius Stiletto 2: I'm a big fan of satellite radio, and the music fan on your list might appreciate a receiver and subscription to the service. Sure, he'll have to take care of installation in his vehicle (or simply use the FM transmitter option); but if you buy one with a home dock kit, he can instantly connect it to a home stereo and enjoy tunes around the house. The Stiletto 2 can also be used as an on-the-go, portable player, which makes it the most versatile of Sirius' current offerings.

Panasonic Globarange phone: These phones are neat because they operate as standard landline phones, but can also serve as VoIP phones, using Panasonic's own technology. If two people have a Globarange phone, which connects to a phone jack and/or Internet router via Ethernet, you can chat for free using your already active high-speed Internet connection. The service is currently available in 8 countries, including Canada and the U.S. Imagine buying one for you, and one for an overseas family member, or even someone in another province or across the border. The great part is that an account doesn't even need to be set up: just connect the phone system, and an ID number will pop up on screen. (Stay tuned to the upcoming December issue of Marketnews Magazine for more on Globarange technology).

Rubik's Revolution: This high-tech version of the 1980s phenomenon called the Rubik's Cube would make a great "fun" stocking stuffer for anyone on your list that's old enough to remember the original. It's designed the same way as the original model, with checkered squares all around, but houses several electronic games that test your speed and smarts.

Gift cards: When all else fails, gift cards are always a "safe" option. Sure, some complain that they aren't personal nor thoughtful enough, but as long as you know the mindset of your gift recipient, you'll know if it's a good idea to head straight to the cash register and pick one of these up; or spend hours in the store looking for that special something. According to a recent Ipsos Redi study, 72% of people said they'd rather a gift card than an actual gift.

TiVo is Here!

I've always wanted TiVo, and to be honest, I'm not quite sure why. I have a set-top box at home with a built-in PVR that lets me record TV programming on the fly, set future recordings, and pause, rewind, and fast forward live TV. But yet I've always wanted one of those "cool" TiVo's that they talk about on American TV all the time. Maybe it's sort of like the iPod vs. every other portable audio player on the market. They all essentially do the same thing: let you listen to digital tunes (and sometimes video) while on-the-go, or through a home audio system or separate speakers. But the iPod arguably does it best, with an easy-to-use, and quite sexy interface. Is that what TiVo promises?

To be honest, I don't know because I've never had the chance to play around with one. Well now, I just might. The company has confirmed its entrance into the Canadian market, and now I feel like an anxious Mac-addict that salivates every time he sees the iPhone commercial. We've waited so long for this device to come to Canada, I was beginning to think that Canadian broadcasters might have to bleep out the word "TiVo" every time it was mentioned and voice-over "PVR" just so we wouldn't feel left out.

In the U.S., "TiVo" has become much like the terms "Kleenex" for tissues and "Xerox" for photocopies, both of which are actually brand names, not products. The same thing happened with the Sony Walkman in the '80s, where virtually every portable player, whether made by Sony or not, was simply lumped into the "Walkman" category. When it comes to TiVo, I, in Canada, will say I missed Dexter last night, but no worries: IPVR'd it; while U.S. TV watchers are more likely to say I missed Dexter last night, but no worries, I TiVo'd it! Do you catch my drift?

Back to TiVo in Canada: although the box that will be available in early December ($199) does not support high-definition signals, up to 80-hours of standard definition content can still be recorded for later viewing. A reader to our news Website http://www.marketnews.ca/ commented that the move is "a day late and a dollar short", stating that, since so many people have already converted to HD, they won't bother with standard definition recording. Au contraire, I say. There are tons of consumers out there that haven't yet bought into the HD craze: in fact, the penetration in Canada is projected to be just about 48% by the end of this year, according to the CEMC. Even so, I'm an HD viewer, but I'd rather record a program in SD than not record it at all (of course I'd prefer HD if given the option).

A subscription will cost $12.95/mo. (in U.S. dollars, not that it makes much of a difference), or less depending on how many years you sign up. As for compatibility, a press release issued by TiVo says that it's "optimized for cable households". A TiVo spokesperson tells me that it will also be compatible with satellite boxes; and dial-up Internet connections (albeit with the turtle speeds that dial-up users have become accustom to).

Maybe it's marketing. Maybe it's U.S., pop culture TV. Maybe it's the same juice iPod-fanatics are drinking. But I'm happy to see Canada added to the TiVo culture. Better late than never, as they say. Next up: the iPhone. We're waiting....