America Online, Inc. And Blockbuster Inc. Expand Strategic Alliance
Agreement To Drive Traffic, Revenues To Blockbuster, Create Special Offers For AOL Members Through Unique AOL/Blockbuster Program Blockbuster Stores To Instantly Register AOL Subscribers
Blockbuster Inc. (NYSE: BBI), the world's leading renter of videos and video games, and America Online (NYSE: AOL), the world's leading interactive services company, announced an expansion of their multi-year alliance that will promote AOL products and services and bring Blockbuster additional revenues from AOL memberships generated through Blockbuster stores. The agreement underscores Blockbuster's commitment to generating new sources of revenues and customers through its retail stores and using its locations to demonstrate and sell an array of Internet, entertainment and communications services. Under the expanded agreement, Blockbuster will promote AOL products and services, with the plan to instantly register AOL subscribers, in each of its more than 4,000 corporate and select franchise locations in the United States. In addition, Blockbuster and AOL will develop an added-value movie/game rental package uniquely available to AOL members. The Blockbuster/AOL Program will have special offers on rentals and special services like personalized movie recommendations, pre-notification and online reservations of new videos as well as movie-related merchandise, movie reviews and trailer downloads. Both companies plan to promote this unique program to AOL's 21 million subscribers and to Blockbuster's 42 million active U.S. member accounts through a variety of marketing and advertising programs both online and offline. ""This expanded alliance between the global leader in interactive services and the world's leading renter of videos and video games provides a great opportunity to introduce new users to all the benefits of the Internet and enrich AOL members' experience when they visit their local Blockbuster,"" said Bob Pittman, President and Chief Operating Officer of America Online. ""Blockbuster's three million daily customers will now have an even more convenient and easy way to take full advantage of AOL's industry-leading interactive services."" ""With a Blockbuster store within a 10-minute drive of nearly 70 percent of the U.S. population, this agreement allows us to put the power of our premier bricks and mortar infrastructure behind the premier interactive services company, enabling AOL to physically reach millions of customers a day,"" said John Antioco, Blockbuster Chairman and CEO. ""Both companies are able to create new services and value offerings for our respective memberships while laying the foundation for the possibility of joint promotion of exciting home entertainment technologies in the future."" The agreement builds on the alliance announced late last year in which Blockbuster became a premier home video provider on AOL's Entertainment Channel and began extensively promoting AOL through Blockbuster stores and the video company's media assets. About America Online Inc. Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services. America Online, Inc. operates: two worldwide Internet services, America Online, with more than 21 million members, and CompuServe, with more than 2.5 million members; several leading Internet brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Navigator and Communicator browsers; AOL MovieFone, the nation's No. 1 movie listing guide and ticketing service; Spinner Networks and NullSoft, Inc., leaders in Internet music; and Digital Marketing Services, a company specializing in online rewards programs and online market research. Through its strategic alliance with Sun Microsystems, the company develops and offers easy-to-deploy, end-to-end e-commerce and enterprise solutions for companies operating in the Net Economy. About Blockbuster Inc. Blockbuster Inc. is a publicly traded subsidiary of Viacom Inc. and is the world's leading renter of videos and video games with approximately 7,153 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 world's largest entertainment companies and a leading force in every segment of the international marketplace.