Blockbuster will be jumping into the movie streaming business with its own set-top box and will announce the service sometime this month, The Hollywood Reporter has learned. The device will connect to the TV and will allow people to rent and, presumably, buy movies and TV shows over the internet.

It looks like it is another battle where Blockbuster will lose.

With the arrival of the DVD format, VHS wasn't the only thing being deprecated. Blockbuster's business model was as well. The new format made it viable to rent movies through the mail, a business model its most formidable competitor, Netflix, was built upon.

So having been at the top of the video rental market for numerous years, Blockbuster's fortune fell as Netflix's rose. Either Blockbuster didn't see this game-changer coming or they failed to adapt quickly enough. Blockbuster had been trying to reinvent itself ever since.

Now, it looks like it's trying to jump onto the digital delivery wave early so they won't have what happened with the DVD happened to them again.

The set-top box will fail. Here's why.

1) Broadband in the U.S is a joke. Until we have reasonable speed for reasonable prices, any play in this area will not reach critical mass. The market simply isn't ready.

2) People already have a box to watch movies and TV shows. It's called a DVD/Blu-ray player. Without real broadband, the experience will be inferior to the DVD/Blu-ray.

3) If people have to pay an upfront investment ala the AppleTV for the privilege of renting movies and TV shows, they'll stick with their DVD/Blu-ray players.

4) Netflix and Apple. Don't forget about them.

5) Net Neutrality. Until this issue is settled, companies in this market may be in for quite a sticker shock later on.