DALLAS -- Blockbuster here and America Online, Dulles, Va., have entered into a co-marketing agreement in which AOL will make a $30 million equity investment in the retailer's new internet subsidiary, Blockbuster.com.
tions in the U.S. In addition, AOL's investment in Blockbuster.com will be used in part for the development of broadband content and delivery, according to a company statement. This signals Blockbuster's intention to get directly involved in the area of internet delivery of movies, said industry observers.
"This strategic alliance between AOL and Blockbuster creates a new force in the home entertainment industry," said John Antioco, chairman and chief executive officer of Blockbuster. "The coupling of AOL's leadership in interactive services with our strength in home entertainment provides us both with immediate opportunities to offer new services to both our memberships and creates a foundation for the two companies to capitalize on emerging home entertainment technologies."
Hollywood, Fox Settle Lawsuit
PORTLAND, Ore. -- Hollywood Entertainment Corp. here and Twentieth Century Fox Home Entertainment, Beverly Hills, Calif., have settled the lawsuit in which Fox had charged Hollywood with underreporting revenues on titles obtained through shared-revenue distributor Rentrak Corp., also of Portland.
"Hollywood regrets the disruption to business this has caused and has agreed to pay Fox an undisclosed sum in settlement of all claims," said a statement issued jointly by the two firms.