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Now, the Dallas-based company hopes to pass the pack by teaming with Microsoft Corp. on new mobile services that will let customers watch even more movies on more devices.
"Eventually, we'll give customers instant access to any movie on any device with an Internet connection and a screen," said Keith Morrow, Blockbuster's chief information officer.
"More immediately, we could use this technology to reach into airports. Travelers could quickly download movies from Blockbuster kiosks to their portable media players."
Blockbuster will try to build some of these services on top of the new software platform from Microsoft.
Dubbed "Live Mesh," it uses Internet connections to share data among different devices.
Folks with multiple PCs can already use Live Mesh to do some basic things, such as synchronizing their home and work calendars.
Soon, Live Mesh will work with Macs and Windows Mobile smart phones.
"We've built in the functionality that allows Microsoft programs to talk to each other, but we're also opening up Live Mesh to anyone else who has cool ideas for sharing data," said Jeff Hansen, general manager of Microsoft's Live Services group.
Blockbuster is one of the first companies to try building an application on Live Mesh, and it certainly has some cool ideas.
For example, Mr. Morrow said, once people begin connecting their televisions to the Internet, software such as Live Mesh will allow them to pause a movie on one TV and pick it up -- at exactly the same place -- on a TV in another building.
Mr. Morrow also envisions a system that would notify parents if their kids tried to watch a movie during homework time.
"There are so many things we can do to add value," Mr. Morrow said. "That's why we're working with Microsoft and other partners that can help us deliver."
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