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Movie rental company Blockbuster has snapped up film downloading service Movielink after negotiations said to have lasted since March.
The move, the retailer hopes, will give it a stronger presence in a fast-growing but small and competitive market.
It has around 3,300 titles available – like other downloading services, it has nowhere near the range of content that’s available on DVD.
According to Adams Media Research, earnings from video downloads reached $111m last year, up from $11m in 2005.