BLOCKBUSTER Online(TM) to Take DVD Rental Service to New Level with Guaranteed Lower Price, Enhanced Delivery and More Titles

BLOCKBUSTER Online(TM) to Take DVD Rental Service to New Level with Guaranteed Lower Price, Enhanced Delivery and More Titles

Company Guarantees Monthly Price of $14.99, Increases Distribution Centers and Expands Online Inventory to 30,000 Titles

DALLAS, Dec. 22 /PRNewswire-FirstCall/ -- To firmly establish BLOCKBUSTER Online(TM) as the high-quality, low-price online rental provider, Blockbuster Inc. (NYSE:BBI)(NYSE:BBI.B) announced that effective immediately it has a lower, guaranteed price for its online rental service of $14.99 a month plus tax, an expanded distribution network and increased title selection.

(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20041222/NYW041 )

"We are lowering our subscription price to $14.99 a month. For those who subscribe now, this price is guaranteed through January 2006. Existing BLOCKBUSTER Online subscribers will enjoy the same guarantee," said Shane Evangelist, Blockbuster senior vice president and general manager of BLOCKBUSTER Online. "This is not a promotion. We want to make it clear to anyone who is now subscribing to an online service or considering such a service that Blockbuster is committed to being the high-quality, low-cost provider in the online rental space."

New Pricing

The $14.99 monthly subscription, a price reduction of $2.50, entitles BLOCKBUSTER Online subscribers to unlimited rentals, three movies out at a time, with no due dates, no late fees, all postage included. Subscribers also receive two free in-store movie or game rentals per month.

"To date, more than half of our online customers are new to Blockbuster or reactivated, meaning they have not shopped at our stores in the past six months," Evangelist said. "Plus, through the two free monthly store rental coupons, we are giving subscribers an incentive to come into our stores where they are being exposed to our new offerings including an expanded movie retail section, movie and game trading and our store-in-store game boutiques." Enhanced Delivery

As of mid-January BLOCKBUSTER Online will have 23 distribution centers, more than double the service's distribution capacity when the service launched in August 2004.

Additionally, by implementing new technology with the U.S. Postal Service, BLOCKBUSTER Online is shortening its delivery cycles so customers can receive even more movies each month.

More Breadth and Depth in Titles

At the same time, the company has increased the copy-depth of new release movies and expanded its inventory to include 30,000 titles including significant additions in TV shows, anime, Bollywood classics, Asian cinema, music performance, documentaries, fitness and how-to categories among others. "We have the largest number of titles in our online rental library of anyone in the marketplace. BLOCKBUSTER Online offers customers a huge breadth of titles, including everything from new releases to independent, special interest and hard-to-find movies," said Evangelist.

About Blockbuster Inc.

Blockbuster Inc. (NYSE:BBI)(NYSE:BBI.B) is a leading global provider of in-home movies and game entertainment with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at www.blockbuster.com.

This news release contains forward-looking statements relating to Blockbuster's planned enhancements to its online rental subscription service and Blockbuster's goals, growth expectations and financial expectations associated with such enhancements. Specific forward-looking statements include, without limitation, statements relating to (i) expanded movie inventory, (ii) reduced pricing, (iii) improvements in distribution channels and processes, (iv) related expectations for improved turnaround times and other service improvements and (v) cost structure and anticipated profitability. These forward-looking statements are based on Blockbuster's current intent, expectations, estimates and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others: (i) consumer demand for Blockbuster's online subscription service and the related impact of competitor pricing and product and service offerings; (ii) Blockbuster's ability to implement and maintain the information technology systems and infrastructure necessary to support its online subscription service and to integrate such service with its stores; (iii) Blockbuster's ability to timely open its new distribution centers; (iv) Blockbuster's ability to respond to changing consumer preferences and to effectively adjust its online and integrated subscription service models if and as necessary; (v) Blockbuster's ability to effectively and timely prioritize and implement its initiatives; (vi) changes to Blockbuster's strategies and business plan, including its plans regarding use of capital; and (vii) other factors as described in Blockbuster's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Cautionary Statements" in Blockbuster's annual report on Form 10-K for the fiscal year ended December 31, 2003 and discussed under the heading "Disclosure Regarding Forward-Looking Information" in Blockbuster's quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2004.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20041222/NYW041
AP PhotoExpress Network: PRN3
PRN Photo Desk, photodesk@prnewswire.com
Source: Blockbuster Inc.

CONTACT: Jerianne Thomas of Blockbuster Inc., +1-214-854-3190

Web site: http://www.blockbuster.com/


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