BlockbusterÆ And AtomFilms Announce Video Streaming Agreement

BlockbusterÆ (NYSE: BBI), the global leader in rentable home entertainment, and AtomFilms, a pioneer and recognized leader in next-generation entertainment, announced today that the companies have entered into a letter of intent that, upon implementation, will allow for selected, syndicated, short-form, digital content from AtomFilms to be video streamed on a co-branded section of blockbuster.com for two years beginning this spring. AtomFilms will contribute both content and streaming-related technologies, enabling the two companies to offer movie buffs a rich, web-based short-form entertainment experience, as well as providing a key component of Blockbusterís growing digital content business. The site will be a central destination for short-form content on the Blockbuster Web site. ""This announcement is an exciting next step for Blockbuster as we continue to pursue avenues for our customers to receive quality, in-home entertainment through electronic delivery,"" said Shellye Archambeau, President of blockbuster.com. ""Blockbuster recognizes AtomFilms as a leading provider of online, streaming media and views this relationship as a unique opportunity to jointly benefit from new content and complementary expertise."" ""AtomFilms is pleased to work with Blockbuster in providing digital content for its Web site,"" said Heather Redman, Senior Vice President, Strategy And Development, at AtomFilms. ""The alliance represents a milestone in business-to-business distribution of entertainment content on the Internet and provides additional exposure for the many independent filmmakers who will now be able to display their work on blockbuster.com."" The alliance is a logical step in expanding the offerings on blockbuster.com, and provides insight into Blockbusterís long-term strategy of electronically delivering entertainment into the home. Last month, Blockbuster announced that it had formed an alliance with TiVo, the creator of personal television, to develop and deploy a video on demand like service. In addition, Blockbuster launched a multi-year strategic alliance with America Online (AOL) to pursue broadband content and delivery opportunities. Also in January, Blockbuster announced an agreement with Metro-Goldwyn-Mayer Inc. (MGM) to test and develop a business model to make selected MGM films available for digital streaming and video downloading via the Internet and other home delivery technologies. About AtomFilmsAtomFilms is a leading next-generation entertainment company focused on creating a mass market for short films, animations and digital media. A loyal supporter of independent filmmakers and animators, AtomFilms has built a platform for artists looking for worldwide distribution. AtomFilms markets and distributes high-quality short form entertainment to audiences worldwide, with significant presence on major Internet sites, broadband services, television, airlines and home entertainment companies. An independent company founded in 1998, AtomFilms has offices in Seattle, Los Angeles and London. More information about AtomFilms can be found on the Internet at http://www.atomfilms.com. About Blockbuster Inc.Blockbuster Inc. is a publicly traded subsidiary of Viacom Inc. and is the worldís leading renter of videos and video games with approximately 6,900 stores in the United States, its territories, and 26 other countries. The company may be accessed internationally at blockbuster.com. Viacom Inc. is one of the worlds largest entertainment companies and a leading force in nearly every segment of the international media marketplace.

Source: Blockbuster Inc.