Blockbuster's Movielink reports losses

DALLAS Blockbuster’s newly acquired video downloading service, Movielink, lost $10.18 million in the first half of 2007, according to the company's 8-K filing.

Although Blockbuster reports its earnings for its third quarter Nov. 1, the company filed its 8-K report on Wednesday, to inform investors that its newest venture suffered a loss.

Dallas-based Blockbuster acquired Movielink in August for $6.6 million.

Movielink's loss for the same six-month period in 2006 was $11.6 million, according to the filing with the Securities and Exchange Commission. The company's revenue to June 30 was $1.98 million, up from $1.92 million a year ago.

Movielink was formed in 2001 as a limited liability company with Sony Entertainment Corp. as its sole member. Movielink's main objective offers customers the ability to legally download entertainment content for rental and for purchase. The acquisition enables Blockbuster to allow consumers to download movies to their PCs, portable devices, television-connected home networks and approved set-top boxes.