Blackbuster Inc. has announced it will start offering movies viewable on certain Motorola handsets. Motorola will most probably benefit from this as the company is struggling to keep itself in the leading positions of the mobile phone industry.

In any case, Blockbuster did not detailed on the plan which expands on the company’s OnDemand movie downloading service offered through set-top boxes for TVs. The company did not mention when the service will become available nor did it say anything on its price.

According to news reports, Blockbuster’s vice president for digital entertainment said that the service will offer thousands of films. Blockbuster itself has a number of problems blaming the economic recession for its low revenues. The company tries to find new revenue sources as traffic at movie rental stores lowers and customers move to online video and order-by-mail services like Netflix.

It appears both companies will profit from this service. Motorola will probably become more interesting to future customers and Blockbuster Inc. has a ways to gain more revenues. Everybody is happy.