Blockbuster, DIRECTV Form Marketing Agreement

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Blockbuster Inc., New York and DIRECTV, normally considered competitors for consumers' entertainment dollars, yesterday said they entered a marketing agreement.


The two companies will jointly offer pay-per-view movies through DIRECTV's service. Blockbuster in turn will promote and sell satellite TV systems and services in its stores.


While financial specifics were not released, Blockbuster said it would get a share of pay-per view revenues from the joint channels and receive incentives to sell DIRECTV systems in its stores. DIRECTV gains access to 5,000 Blockbuster retail stores and said it expects the deal to increase its earnings and market share of the satellite TV industry.
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