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MGM, Blockbuster to Develop Digital Streaming

Metro-Goldwyn-Mayer Inc. and Blockbuster Tuesday sealed a non-exclusive agreement for Blockbuster to make available selected MGM films for digital streaming and downloading video via the Internet and other home delivery technologies.

The arrangement between MGM and Blockbuster is part of a new multi-year VHS revenue-sharing agreement that encompasses both new films and library product.

"We are delighted to be able to partner with Blockbuster in new ways and further capitalize on the extraordinary collection of MGM films, as well as further leverage the powerful MGM brand," said David Bishop, President of MGM Home Entertainment.

"We are excited to be at the forefront of technology with Blockbuster, as we forge new paths in the digital arena and significantly enhance the movie-watching experience in the home. In addition, revenue sharing has not only become beneficial to the industry, but it also has helped effectively satisfy the incredible appetite of consumers."

"This is an exciting announcement for movie lovers. Access to video streaming rights for a portion of the world's largest modern film library 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. This agreement brings us one step closer to accomplishing that goal," said John Antioco, chief executive officer for Blockbuster.

"As for the revenue sharing agreement with MGM, which now encompasses a portion of the studio's renowned classic library, customers can be assured that more MGM films will be in stock at Blockbuster."