Blockbuster is working on a new movie-streaming and/or downloading service, according to a news report. The reported device apparently would let its customers view movies from a television set-top box similar to the Apple TV or an Xbox 360, both of which can download rentable movies. Such a service or something similar is almost a necessity if Blockbuster expects to remain a top player in home entertainment, according to Phil Leigh, a senior analyst for Inside Digital Media.

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