TVSquad

According to the Wall Street Journal, Blockbuster is in negotiations to buy movie download service Movielink. This would give Blockbuster an entry into the digital download business, while giving Movielink much wider exposure than the company has right now.

Movielink is owned by the Hollywood studios and has about as good a library of films available for download as any other service on the market right now. Word is that Blockbuster could pick the company up for less than $50 million.

Blockbuster has already shown its interest in moving into online video distribution, having created a Netflix-like online rental store that allows users to order movies online and return them either to a local store or through the mail. With Netflix rolling out online video streaming, Blockbuster may be feeling the pressure to keep up with the Joneses.

[via Zatz Not Funny]