Blockbuster Achieves Year-End Goal of 2 Million Online Subscribers

DALLAS, Jan. 3 /PRNewswire-FirstCall/ -- Blockbuster Inc. today announced that the company ended the year with approximately 2.2 million online rental subscribers, including approximately 2 million paying subscribers.

"We are pleased that we achieved our year-end goal of 2 million subscribers, an addition of more than 500,000 paying subscribers since the end of the third quarter. We credit our success to BLOCKBUSTER Total Access(TM), which gives our online customers the option of returning their DVDs through the mail or exchanging them at a participating BLOCKBUSTER(R) store for free in-store movie rentals," said John Antioco Blockbuster Chairman and CEO. "The strong consumer appeal of Blockbuster Total Access has translated into significant subscriber growth and was accomplished without any broadcast media except in a handful of test markets."

Under the Blockbuster Total Access program for each online rental exchanged in the store, customers can receive a free in-store movie rental. Blockbuster Total Access also offers subscribers faster shipping cycles. When subscribers return their online rental(s) to a participating Blockbuster store, the store check-in process automatically initiates the process of shipping the next available movie(s) in the subscriber's rental queue, so customers generally receive their online movie(s) a day faster than if they had dropped the return movies in the mail themselves. In-store movies are still subject to store rental terms, including due dates, and must be returned to the store from which they were rented.

"Thanks to Blockbuster Total Access, customers no longer have to choose between renting online or renting in-store, and they never have to be without a movie," said Antioco. "We believe this compelling and unique offering will make blockbuster.com the fastest growing online DVD rental service in 2007."

With more than 65,000 titles to choose from online, Blockbuster's online rental service delivers DVDs to subscribers' mailboxes in return-pre-paid postage envelopes. There are no due dates or late fees with the movies rented from Blockbuster's online rental service, and subscriptions start as low as $5.99 a month, with the $17.99 three-out unlimited plan being the most popular. A two-week free trial membership to Blockbuster Total Access is available for a limited time, including to those customers who have previously tried Blockbuster's online rental service but are not currently subscribing to the service. Visit http://www.blockbuster.com/ for details.

About Blockbuster

Blockbuster Inc. (BBI, BBI.B) is a leading global provider of in-home movie and game entertainment with over 8,000 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at http://www.blockbuster.com/.

Forward-Looking Statements

This press release includes forward-looking statements, including those related to BLOCKBUSTER Total Access, our expectations regarding the competitive impact of the program and our online subscriber growth expectations. These forward-looking statements involve risks, uncertainties, assumptions and other factors that are difficult to predict. Actual results may vary materially from what is expressed in or indicated by the forward- looking statements. Factors that may cause actual results to vary materially include, among others, (i) consumer appeal of BLOCKBUSTER Total Access and the related impact of competitor pricing and product and service offerings, (ii) overall industry performance, (iii) our ability to obtain favorable terms from suppliers, including on such matters as copy depth and uses of product, (iv) the studios' dependence on revenues generated from retail home video and their related determinations with respect to pricing and the timing of distribution of their product, (v) the variability in consumer appeal of the movie titles released for rental, (vi) our ability to respond to changing consumer preferences, including with respect to video on demand, digital distribution and other new technologies and alternative methods of content delivery, and to effectively adjust our offerings if and as necessary, (vii) the extent and timing of our continued investment of incremental operating expenses and capital expenditures to continue to develop and implement our initiatives, including BLOCKBUSTER Total Access, and our corresponding ability to effectively control and reduce overall operating expenses and capital expenditures, (viii) our ability to effectively and timely prioritize and implement our initiatives and to timely implement and maintain the necessary information technology systems and infrastructure to support our initiatives, and (ix) and other factors as described in our filings with the Securities and Exchange Commission, including the factors discussed under the heading "Risk Factors" in our Form 10-K for the year ended December 31, 2005 and under the heading "Disclosure Regarding Forward-Looking Information" in our Form 10-Q for the quarter ended September 30, 2006. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this press release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.