Beginning this week, Blockbuster will start offering Blu-ray movies, for rent and sale in all of its corporate stores in the U.S., as well as in Canada.

To highlight the availability of Blu-ray in its stores, Blockbuster is installing Blu-ray kiosks in the center of its stores. Featuring a 42-inch high-definition TV with movies playing via a PLAYSTATION 3 console, the Blu-ray kiosks will enable customers to experience the movie-viewing advantages of high-definition technology.

As for Blockbuster's by-mail service, in addition to the selection of Blu-ray titles it carries online, this week Blockbuster began offering online subscribers a Blu-ray preference setting so they can automatically indicate that they want to receive all available movies in the high-definition format.

Eyes Circuit City Purchase
In related news, Blockbaster also announced today that it has offered to acquire Circuit City Stores, Inc.for at least $6.00 per share in cash.

The offer was made in a letter sent to Circuit City Chairman and Chief Executive Officer Philip Schoonover on February 17th on behalf of the Blockbuster Board of Directors.

The company said that to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive proposal.

"Blockbuster is making its proposal public because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company," Blockbuster said in a statement.

Blockbuster noted the combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices.