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Blockbuster and Tivo announced a partnership bringing Blockbuster’s On Demand system to Tivo set top boxes. The move basically mirrors similar deal with Netflix and Amazon.

The service will allow Tivo customers to access Blockbuster online movie system, which offers about 10,000 movies according to the company. Most rentals will cost between $2 to $4, and sales start at about $10. In exchange, Blockbuster will start selling Tivo boxes in its stores.

Blockbuster claims its selection of online movies will be bigger than both Netflix and Amazon, however, it’s likely battle lines for content will be ever shifting.

Blockbuster also said it will be announcing further deals with other companies, and specifically singled out Apple. Presumably, this will include Mac OS support for streaming, but seems reasonable also an iPhone/iPod app.