Best Buy and Blockbuster to do movie downloads

It seems like consumer electronics retailer Best Buy (NYSE: BBY) just cannot stay out of the PR limelight these days. The retailer apparently has plans to enter the video download business, according to Jon Feltheimer, the CEO of Lion's Gate entertainment. Video and DVD rental chain Blockbuster Inc. (NYSE: BBI) may enter that field as well, something that's not really new news. Feltheimer let a few cats out of the bag recently on a conference call with industry analysts when he said that digital content delivery contracts were in place with companies like Apple Inc. (NASDAQ: AAPL), Best Buy, Blockbuster and Wal-Mart Stores (NYSE: WMT).

Although Best Buy and Blockbuster have not announced their intentions officially, the statement by Feltheimer is a nice peak of what may be coming this year. Why? Well, Feltheimer was ahead of the announcement on the selling of movies from his studio to the iTunes Store, so many consider him a reliable source now. He also mentioned Microsoft Corp. (NASDAQ: MSFT) in that list, so he may be really spilling the beans with this latest comment, eh?

Blockbuster, which has seen a solid stream of customers shift to online-only DVD rental chain Netflix Inc. (NASDAQ: NFLX), has been rumored to be getting into the online video download services arena for over a year now -- but now a new move may be just around the corner. Will we see DVD rental chains competing with consumer electronics chains to 'rent' online movies soon? Most likely, yes. Additionally, the competition between Wal-Mart's existing movie download service (which is so restricted as to be essentially useless) and what Best Buy may offer should make for interesting breakfast conversation one of these days.