Blockbuster Inc. Acquires Movielink, LLC
Deal Includes Content Agreements With Major Studios Gives Blockbuster Access to One of the Largest Libraries of Downloadable Movies
In a move to further provide customers with even more convenient access to home entertainment, Blockbuster Inc. (NYSE:BBI) (NYSE:BBI.B) today announced it has acquired Movielink, one of the nation's leading movie download services.
The acquisition gives Blockbuster access to one of the largest libraries of downloadable movies and a large array of television content. Terms of the agreement were not disclosed.
With thousands of movies and television shows available in its digital library for downloading, Movielink offers customers the ability to legally download entertainment content for rental (VOD) and for purchase (EST). The service was created in 2002 by Movielink, LLC, a joint venture of Metro- Goldwyn-Mayer Studios Inc., Paramount Pictures, Sony Pictures Entertainment, Universal Pictures and Warner Bros. Studios.
The acquisition of Movielink, which has VOD and EST license agreements with the five founding studios, as well as more than 30 other studios, television-content distributors, and foreign and independent content providers, enables Blockbuster to offer consumers downloadable entertainment content via their PCs, portable devices, television-connected home networks and approved set-top boxes.
"Blockbuster is committed to keeping pace with the changing needs of customers by offering them an expanding array of convenient ways to access entertainment content," said Jim Keyes, Blockbuster Chairman and CEO. "Our acquisition of Movielink, with its associated digital content, is the next logical step in our planned transformation of Blockbuster. Now, in addition to the entertainment content we provide through our stores and by mail, we have taken an important step toward being able to make movie downloading conveniently available to computers, portable devices and ultimately to the television at home."
"The studios' goal with the Movielink service has always been to make digital entertainment content more conveniently, more widely and more securely available to consumers. This acquisition should further that goal," said Jim Ramo, CEO of Movielink from its inception. "With Blockbuster's ability to leverage its store network, online assets, and marketing expertise, Blockbuster should be able to grow the market for digitally-delivered entertainment content, and we believe that's good news for consumers and content providers alike."
Blockbuster plans to continue to operate the Movielink service and to eventually make elements of the service available through blockbuster.com.
"Thanks to the vision of the participating studios, Movielink has been at the forefront of the emerging digital media market," said Keyes. "We are grateful to the studios for entrusting us with their content, and we look forward to continuing to work with them to make even more digital content available to a growing consumer audience."
Blockbuster Inc. is a leading global provider of in-home movie and game entertainment, with approximately 8,000 stores throughout the Americas, Europe, Asia and Australia. The Company may be accessed worldwide at http://blockbuster.com/.
DALLAS, Aug. 8, 2007 /PRNewswire-FirstCall/ --