America Online Inc. And DVD EXPRESS Announce Multi-Million Dollar Marketing Agreement
DULLES, Va. and LOS ANGELES--(BUSINESS WIRE)--Sept. 8, 1998--
DVD EXPRESS to be Featured on AOL, AOL.COM, Digital City
and CompuServe; Will Offer More Than 1600 Movie Titles from Dozens
of Categories in DVD Format
America Online Inc., the world's leading Internet online services company, and DVD EXPRESS Inc., the leading online DVD superstore, today announced a new marketing alliance making it easier than ever before for consumers to purchase DVD-format movies.
Through DVD EXPRESS's premier positioning on AOL, AOL.COM, the most visited consumer site on the Web, AOL's Digital City, the nation's most popular branded local content network, and CompuServe, the number one Internet online choice for busy adults, AOL, CompuServe and other Web consumers will have a fast and convenient way to choose from over 1600 movie titles in dozens of categories, and then have their new DVDs mailed to their home.
Over the three-year term of the agreement, AOL will receive guaranteed payments totaling $15 million, and will be eligible for a share of revenues generated by DVD EXPRESS once certain revenue thresholds specified in the agreement have been met. AOL will also receive warrants to purchase shares in DVD EXPRESS. DVD EXPRESS's presence on AOL, AOL.COM and Digital City is expected to begin launching in early September.
Under a separate, one-year, $1 million agreement, DVD EXPRESS will also have a presence on the CompuServe service.
Under the terms of the agreement, DVD EXPRESS will receive featured positioning throughout the AOL service, including in the Entertainment, Shopping, Lifestyles, Travel, Influence and Research and Learn Channels. In addition, DVD EXPRESS will be prominently featured throughout appropriate areas of AOL.COM, Digital City and CompuServe. DVD EXPRESS will also feature promotions and special offers for AOL members and users of AOL.COM and Digital City as part of the new relationship.
"DVD EXPRESS's proven track record as a DVD retailer and their strong commitment to customer service make them a great fit for all of our brands - AOL, AOL.COM, Digital City and CompuServe," said Bob Pittman, president and COO of America Online Inc. "Our goal is to provide AOL and CompuServe members, and visitors to our Web brands, with the best in value and convenience, and DVD EXPRESS fits the bill."
"We are proud to be in this long-term strategic relationship with AOL," said Mike Dubelko, CEO and founder of DVD EXPRESS. "This deal will help us quickly establish our market leadership and brand recognition in the online DVD category."
About America Online Inc.
America Online Inc., based in Dulles, is the world's leader in branded interactive services and content. America Online, Inc. operates two worldwide Internet online services: America Online, with more than 13 million members; and CompuServe, with approximately 2 million members.
America Online Inc. also operates AOL Studios, the world's leading creator of original interactive content. Other branded Internet services operated by America Online, Inc. include AOL.COM, the world's most accessed Web site from home; Digital City Inc., the No. 1 branded local content network and community guide on AOL and the Internet; AOL NetFind, AOL's comprehensive guide to the Internet; AOL Instant Messenger, an instant messaging tool available on both AOL and the Internet; and ICQ, an instant communications and chat technology on the Internet.
About www.dvdexpress.com
Produced in the heart of Hollywood, www.dvdexpress.com, the Website environment offers shoppers an entertaining magazine-style environment, articles on movies, celebrities and DVD technology. "New Title Spotlight," alerts customers to the most recent DVD releases, "Dateline: Hollywood" offers a real-life glimpse into Tinseltown, and "The Directors" series takes a fresh look at the film's of major directors.
About DVD EXPRESS
Hollywood-based DVD EXPRESS is the largest online video retailer. The company enjoys relationships with Universal, Disney, Columbia TriStar and Warner Home Video. In addition to online retail, the site offers customers a robust online community with entertaining DVD-related editorial content, contests and promotions.
Titles are available in every category, including Action, Animation, Classic, Comedy, Concert, Cult, Documentary, Drama, Family, Foreign, Japanese Anime, Musicals, Sci-Fi/Horror, Suspense, Western and Special Interest.
CONTACT:
America Online Inc.
Tom Ziemba, 703/265-3284
or
DVD EXPREESS Inc.
Julie Gladders, 213/938-7600
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