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Blockbuster to Distribute Universal Movies over VOD

Blockbuster (www.blockbuster.com) announced that it made a deal with Universal Pictures to make the studio's films available for streaming via its video on demand service. The arrangement with Universal marks its first deal with a major movie studio.

"Access to video streaming rights with Universal underscores our goal as a company to provide quality, in-home entertainment, in whatever form our consumers want it delivered, whether through our stores or other channels such as electronic delivery," said John Antioco, chairman and chief executive officer for Blockbuster. "Our customers have indicated that this is a service they desire, and our Blockbuster Entertainment On-Demand service is receiving a positive response from current users."

Last year, Blockbuster announced an agreement with Enron Broadband Services, to deliver a video on demand service featuring movies on-demand. The service is now currently being tested in Portland, Seattle and American Fork, Utah.

Blockbuster also separately announced a deal with RadioShack to create an "electronics store-within-a-store" inside Blockbuster locations.

Blockbuster is a subsidiary of Viacom, which also owns CBS, MTV, Paramount and other media properties.

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