Missed this one last week. Blockbuster teamed up with 2Wire to introduce the 2Wire MediaPoint digital media player which allows users easy access to on-demand video content via Blockbuster’s ONDEMAND content. For a limited time, customers can get the 2Wire MediaPoint digital media player for free with the advance rental of 25 Blockbuster ONDEMAND titles for $99 dollars.

While it’s certainly easy to compare ONDEMAND to Netflix’s Watch Instantly service, it’s more akin to services from Apple TV and Xbox 360. You pay rental fees on a per title basis for as low as $1.99 each. This also means you can watch newer titles than those typically found on Netflix.

The Mediapoint digital media player connects to your network via Ethernet or Wi-Fi and allows you to fast-forward, rewind, and pause your on-demand video. Movies are streamed at DVD quality for now although the player supports HD video content and can be connected to HDTVs.

I think Blockbuster missed the boat on this one. We don’t need another on-demand video rental service. What we need is an all-in-one subscription based service that lets customers stream on-demand all of the movie titles they want on a flat monthly fee.

[Check it out]

Technorati Tags: Blockbuster ONDEMAND, 2Wire Mediapoint digital media player