America Online, Inc. and Blockbuster Inc. Launch
Multi-Year Strategic Alliance
Blockbuster to be Premier Home Video Provider On AOL's
Entertainment Channel -- Cyberspace's No. 1 Entertainment Site
DULLES, Va. and DALLAS--(BUSINESS WIRE)--Nov. 3, 1999-- AOL to Receive Major Promotion Through 4,000 U.S.
Blockbuster Stores,
Blockbuster TV Advertising and Entertainment Awards
AOL to Make $30 Million Equity Investment in Blockbuster.com
America Online (NYSE: AOL - news), the world's leading interactive services company, and Blockbuster Inc. (NYSE: BBI -
news), the world's leading renter of videos and video games, today launched a multi-year strategic alliance that provides for
Blockbuster to become a premier home video provider on AOL's Entertainment Channel and AOL to be extensively promoted
through Blockbuster key distribution channels.
As part of the agreement, America Online will make a $30 million equity investment in Blockbuster.com that will be used for,
among other things, joint development of broadband content and delivery.
Under the three-year alliance, Blockbuster will have a continuous presence in the Home Video area of AOL's Entertainment
Channel -- ranked by Media Metrix as the No. 1 entertainment site in cyberspace. AOL members will have instant and direct
access to the wide range of home videos and entertainment information available on Blockbuster.com.
In addition, the agreement will give AOL members access to the video company's premier entertainment products, by going to
a co-branded AOL/Blockbuster.com Web site, or using AOL keyword: Blockbuster.com. The Blockbuster.com site will be
relaunched and available to AOL members at the end of November 1999.
Blockbuster, which has 65 million 12-month active member accounts world-wide and stores within a 10-minute drive of nearly
60% of the U.S. population, will engage in significant off-line promotion of AOL, including its next-generation AOL 5.0
software and will distribute free AOL 5.0 CD-ROMs at approximately 4,000 corporate Blockbuster locations in the U.S.
At the same time, Blockbuster will expand its on-air promotion of America Online on the Blockbuster in-store television
network, through TV advertisements, and in programming like the Blockbuster Entertainment Awards.
Bob Pittman, President and Chief Operating Officer of America Online, said: ''We are thrilled with this innovative new alliance
with Blockbuster, which benefits both companies and consumers. Blockbuster will make it easy and convenient for our
members to find new and classic videos from its industry-leading roster of titles. With a powerful consumer brand name and
extensive U.S. retail presence, Blockbuster also will effectively promote our AOL service and new AOL 5.0 software to their
customers.''
''This strategic alliance between AOL and Blockbuster creates a new force in the home entertainment industry,'' said John
Antioco, Chairman and CEO of Blockbuster. ''The coupling of AOL's leadership in interactive services with our strength in
home entertainment provides us both with immediate opportunities to offer new services to both our memberships and creates a
foundation for the two companies to capitalize on emerging home entertainment technologies.''
Blockbuster will also have prominent anchor tenant status in the Shop @ AOL, AOL.COM, CompuServe, Netscape
Netcenter and Digital City shopping destinations, bringing the video company's popular selection of film titles and
entertainment-related products to the more than 21 million AOL and CompuServe members, as well the millions of visitors to
AOL's Web-based brands.
AOL will work to integrate Blockbuster entertainment content into its programming, expanding the video company's ability to
reach AOL's membership. Blockbuster will also provide entertainment information to enhance the My Calendar feature
available with AOL 5.0.
About America Online
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 19 million members, and
CompuServe, with more than 2.2 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; and Spinner Networks and NullSoft, Inc.,
leaders in Internet music.
Through its strategic alliance with Sun Microsystems, America Online develops and offers easy-to-deploy, end-to-end
e-commerce and enterprise solutions for companies operating in the Net Economy.
About Blockbuster
Blockbuster Inc. (NYSE: BBI - news) is a publicly traded subsidiary of Viacom Inc. and is the world's leading renter of videos
and video games with approximately 6,500 Blockbuster Video stores in the United States, its territories and 25 other countries.
The company may be accessed internationally at www.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.
This news release contains forward-looking statements relating to our operations that are based on our current intent,
expectations, estimates and projections. These statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict.
A number of important factors could cause actual results to differ materially from those indicated by such forward-looking
statements. Such factors include, among others, those set forth in the company's recently filed prospectus dated August 10,
1999. |
