Bluebox Devices will release their Video on Demand (VoD) service to up to 50 thousand invite-only customers in the second quarter 2008. The VoD service will be rolled out on the Internode broadband network as the test bed for further expansion.

According to Bluebox Devices chief operating officer Getha Somasundaram over 1,200 movies and TV shows will be available for direct download, as well as 100,000 songs. Music and TV shows will be available for purchase, however for now movies will be rent-only. Pricing is expected to be 'comparable' to similar services.

"Typical to your Blockbuster, a user can rent a movie for varying periods at different prices," Somasundaram told PC World. "We will release movies for purchase hopefully a few months after the 2Q launch next year."

He stressed that the Bluebox doesn't want to be "bundled with mainstream providers" and will feature 'niche' content such as independent and foreign films alongside regular content.

Bluebox is currently negotiating with more ISPs for distribution as well as with content providers to enlarge the entertainment catalogue.