The digital download service is just the latest in Blockbuster's new strategy to hold on to customers by offering something other than the brick and mortar experience. Some of their other ideas have included DVD subscription services and DVD kiosks. Blockbuster is hoping these new services could reduce the effect that illegal downloading has cost their bottom line as well as open them up to new tech-savvy customers. I understand that Blockbuster needs to fight off the pirates like everybody else, but I doubt that products bogged down with DRM are going to persuade your average pirate to go legit. But on the upside, at least Blockbuster's latest scheme would mean that there's nothing to return, and you don't have to deal with receiving damaged or scratched discs -- but in the grand scheme of things, that ain't much.
If Blockbuster wants to live to fight another day, I think they are going to have to come up with something a lot better than this, don't you?