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Blockbuster announced on Tuesday that its OnDemand service is coming to mobile phones. Last month Blockbuster signed a deal with Samsung to deliver movies directly to homes.

Blockbuster OnDemand, to be available on “select” Motorola mobile phones, will provide users with access to “thousands” of films, the company said in a statement. Motorola’s Android phones are a likely target. But competing with the iPhone and its many multimedia capabilities, will be an uphill battle, observes C/Net.

The iPhone features a YouTube app, providing users access to just about any video they want, as well as iTunes, through which users can download their favorite films or television shows.

Netflix is also rumored have an iPhone App in the coming weeks. If that happens, the iPhone will become an even more attractive handset for those who want multimedia features.

Blockbuster’s OnDemand service is an integrated version of the service found on the 2Wire MediaPoint Player, explains C/Net, which they ranked dead last when compared to competitors such as Apple TV (iTunes, YouTube), Vudu, and Roku (Netflix and Amazon).

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