Blockbuster, Vivendi Universal Sign Pact for Movies-on-Demand Service

DALLAS — Blockbuster Inc. signed an agreement with Vivendi Universal’s Universal Pictures to make the studio’s films available for digital streaming via the Blockbuster entertainment-on-demand service.

Financial terms weren’t disclosed.

Blockbuster (BBI) said the arrangement with Vivendi’s (V) Universal coincides with a new revenue-sharing agreement that encompasses new films available for rent at Blockbuster.

Last year, Blockbuster signed an agreement with Enron Corp.’s (ENE) Enron Broadband Serv ices to deliver a video-on-demand service, initially featuring movies on demand. The service is currently being tested in Portland, Seattle and American Fork, Utah, the company said.

Separately, Blockbuster said it signed an agreement with RadioShack C orp. (RSH), Fort Worth, Texas, to provide a RadioShack store-within-a-store concept inside Blockbuster locations. Financial terms weren’t disclosed.

The companies are attempting “to create a full-service home entertainment destination within Blockbuste r while increasing RadioShack’s reach to more consumers, more frequently and expanding their distribution network.”

RadioShack’s sales associates will manage the stores within Blockbuster, which will offer digital entertainment products including home e lectronics, telephony services, high-speed Internet access and emerging connectivity technologies.

The companies plans to launch phase one of the concept in about 130 Blockbuster stores in four markets and plan a phase-two nationwide rollout of the company’s remaining stores in 2002.

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