Blockbuster is launching a strange pilot to test in-store kiosks with downloadable movies. I say strange, since I thought the benefit of downloading was you didn’t have to get out of your chair. But that’s why it’s a pilot I suppose. Blockbuster still has to negotiate the deals with the studios and the movies currently only work with Archos devices. But if the demand is there, it wouldn’t be too difficult to fix these two problems.

I just wonder if there’s a market for this service. You would say the kind of high tech person interested in doing this, would have a high speed internet connection at home. Other people will take the DVD rental instead. I don’t think this is going to solve Blockbuster’s ‘iTunes problem.’

In a speech at the National Press Club, Motion Picture Association of America president Dan Glickman said the movie industry had to adjust to the current ‘tech-savvy generation.’ The MPAA actually realized the people downloading movies still go to the theater in much greater numbers than the average consumer.

While he felt that regulation is still needed, he said, “We also know that consumers increasingly want to enjoy our films in new ways. We have to give folks the choices they desire — legally — in the comfort of their homes and wherever else they wish to enjoy our movies.“

Basically admitting legal downloading always was and still isn’t where it has to be to satisfy consumers. “There are technology and policy issues to work through. [...] I think we’ll soon see some progress that will really open up how exciting this future could be for all of us,” Glickman said.

After that, he lightly touched upon net neutrality. The MPAA is still in favor of regulating internet usage, but he said “laws of unintended consequences are always applicable. We need to be extremely cautious before going down this road.“