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Blockbuster: Ready to Tango With Telcos?

3:05 PM -- The land rush for Internet streamed video is on, and Blockbuster Inc. wants in.

Early leaders in the space include Apple, Amazon, Netflix, Hulu, and YouTube. Blockbuster thinks it can leverage its 60 million+ retail customer relationships to join that fraternity, and is now openly courting the likes of Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) for help. Blockbuster CEO Jim Keyes said as much at the recent Citigroup Media Investor Conference, held this week in Phoenix.

A Blockbuster/telco content partnership makes logical sense. Large telcos like Verizon have already revealed their CDN intentions. Accessing Blockbuster’s content library could be a plus. Of course, the devil is always in the details. The partnership graveyard is full of ventures that made good logical sense.

— Bernardin Arnason, Managing Partner, Pivot Group , and Chairman, TelcoTV 2008

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