Source: Blockbuster Inc. Web Site: http://www.blockbuster.com
Blockbuster Inc. Organizes To Take Advantage Of Brand, Store Base And Emerging Technologies
With the goal of taking maximum advantage of its world-class brand, retail store base, customer database and the opportunities presented by emerging home entertainment technologies, Blockbuster Inc. (NYSE: BBI) today announced the creation of three operating divisions. The Divisions are: Blockbuster Worldwide Store Operations, which includes the company's global retail store base and related staff support functions, and which will be led by Nigel Travis, President; Blockbuster Entertainment Technologies includes Blockbuster.com under the leadership of Shellye Archambeau, President E-Commerce, and a New Media Group, dedicated to exploring various forms of electronic home entertainment delivery, under Santo Politi, President. The third division, Blockbuster Business Solutions, will market the company's database, brand and media assets in the business-to-business arena. Greg Smogard, formerly Senior Vice President Relationship Marketing, has been named President of the Business Solutions Division. The divisions will continue to operate under the Blockbuster umbrella and will continue to report to John Antioco, Chairman and CEO, and the current executive committee, with the exception of Gary Peterson, Chief Operations Officer, who is departing the company but will be available to provide consulting services. Blockbuster previously announced plans to spin off Blockbuster.com, perhaps as soon as next year, if market conditions are appropriate. ""According to industry analyst Paul Kagan and Associates, in-home movie consumption will increase by around 45 percent over the next eight years, which is a huge opportunity for Blockbuster,"" said Antioco. ""With our brand, our retail store base, our customer database, marketing capabilities, studio relationships and distribution capabilities, Blockbuster is perfectly positioned to deliver movies to people at home however they want to receive them - whether it is through our stores, through Blockbuster.com or through other emerging technologies. ""This organizational change will allow each of our divisions to focus on their respective areas while at the same time working together to create new levels of value for our shareholders and ensure the success of Blockbuster today and in the future,"" Antioco added. Blockbuster Inc. is a publicly traded subsidiary of Viacom Inc. (NYSE: VIA) and is the world's leading renter of videos and video games with approximately 6,900 stores in the United States, its territories and 25 other countries. The company may be accessed internationally at blockbuster.com. Viacom Inc. is one of the world's largest entertainment companies and a leading force in nearly every segment of the international media marketplace.