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BLOCKBUSTER(R), ActiveVideo Announce Agreement For Cloud-based On-Demand Navigation

Intelligent UI will be Housed in the Network

DALLAS and SAN JOSE, Calif., Jan. 6 /PRNewswire/ -- Blockbuster Inc. (NYSE: BBI) (NYSE: BBI.B), a leading global provider of media entertainment, and ActiveVideo Networks(TM), a global leader in cloud-based interactive video delivery solutions, today announced an agreement that is designed to enhance the consumer VOD and EST experience of the BLOCKBUSTER On Demand® movie service across multiple connected platforms.

This relationship is intended to leverage the core products of both companies including the extensive library of BLOCKBUSTER On Demand® content by combining Blockbuster digital assets with the ability of ActiveVideo® to process Web-based user interface in the network "cloud" -- the relationship creates a superior digital cinema experience in the home. Viewers will be able to search, find and view titles of interest by incorporating previews and trailers, as well as Web-based search and recommendation capabilities.

Because the ActiveVideo CloudTV platform can enable rich user interfaces to any digital set-top box or broadband connected CE device, the Blockbuster UI being developed by ActiveVideo can serve as a gateway to BLOCKBUSTER On Demand® services that are currently being deployed.

"In the digital age, simplifying the ability of the customer to quickly find the desired title is every bit as important as it has been in our stores," said Blockbuster Senior Vice President of Digital Entertainment, Kevin Lewis. "By joining with ActiveVideo, we're able to take a wide assortment of search and discovery tools that have proven their value on the Web and bring them to the television as part of an enhanced home entertainment environment."

"From its inception, Blockbuster has been a leading force in capitalizing on new ways to connect home viewers with the titles they desire," said Jeff Miller, president and CEO of ActiveVideo Networks. "As we move toward a new generation of entertainment that is streamed directly to the home, we're delighted to be working with them to develop solutions that increase the ability of customers to move quickly from the browsing process to the final purchase."

A leading global provider of rental and retail movie and game entertainment, Blockbuster provides customers with convenient access to media entertainment anywhere and any way they want it -- whether in-store, by-mail, through vending kiosks or digitally on demand directly to their living room or mobile device. With a highly recognized brand name and a library of more than 125,000 movie and game titles, Blockbuster leverages its multichannel presence to best serve the two million daily global customers and more than 50 million annual global customers. The Company may be accessed worldwide at www.blockbuster.com.

About ActiveVideo Networks

ActiveVideo Networks is the world leader in cloud-based interactive services that are redefining television (iTV 2.0). Available in nearly 5 million homes, ActiveVideo immerses viewers in an engaging experience that combines Web video, Web 2.0 functionality and traditional television. With ActiveVideo, viewers can navigate a completely interactive environment of both linear and broadband programming including rich interfaces and graphics optimized for TV and remote control navigation; social networking; personal media; niche content; and targeted, actionable advertising. ActiveVideo uses intelligent MPEG streaming to deliver the Web 2.0 experience to a worldwide television audience through both legacy and next generation digital set-top boxes and broadband-connected devices.

The company's network-centric approach simply and inexpensively enables expanded programming, navigation and advertising possibilities, allowing viewers to define and share their TV experiences. ActiveVideo combines Web-based media and targeted, clickable advertisements with the high-quality video, immediate responsiveness and remote control navigation of television for uniform interactivity across all digital and IPTV set-tops, CI+ enabled televisions, and broadband-connected CE devices. ActiveVideo Networks is based in the heart of Silicon Valley, with offices in Los Angeles, Baltimore and Hilversum, the Netherlands. For more information, visit www.activevideo.com.

SOURCE ActiveVideo Networks

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