The proposed system will enable consumers to pick a film and download it onto a memory stick or card, meaning it can then be viewed on a portable mobile device or laptop. Blockbuster is also looking at online downloads and video-on-demand services.
Broadening distribution and sales channels is viewed internally as key to combating the growth of online competitors while appealing to customers who like to browse before renting or buying.
The rental market has been shaken up by the launch of companies such as ScreenSelect, Video Island and Lovefilm, which allow subscribers to order DVDs online and receive them by post. Their arrival forced Blockbuster to launch a similar service last year.
There has been speculation that Tesco, which offers an online DVD ordering service through Video Island, is considering a movie download service.
According to rental trade body Media Research & Information Bureau, the number of in-store DVD and video rentals fell from 186m in 2001 to 153m in 2004. Online services now account for more than 10% of rentals.
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