Blockbuster and PayPal Provide More Ways to Access Entertainment

PayPal Customers Receive $10 Cash Back on New blockbuster.com Subscriptions this Summer

DALLAS, June 24 // PRNewswire-FirstCall // -- Starting today, entertainment provider Blockbuster Inc. is accepting PayPal as another safe and convenient way to make purchases on the company's web site, blockbuster.com.

"Blockbuster.com is the only site that offers customers the flexibility to rent DVDs through the mail, purchase them new or used online and, later this summer with the premiere of our new movie downloading service, the ability to purchase or rent digital entertainment," said Keith Morrow, CIO, Blockbuster Inc. "Now with the addition of PayPal, we're also offering customers even greater flexibility in regards to their payment method."

To celebrate the launch of PayPal, Blockbuster is offering PayPal customers $10 cash back for signing up for a new online rental subscription at blockbuster.com. To take advantage of the cash back offer, PayPal customers should visit http://www.blockbuster.com/paypal.

"As one of the leading online and offline video entertainment providers, Blockbuster's service is a natural fit for millions of PayPal's savvy online shoppers," said Mary Anne Gillespie, vice president of sales at PayPal. "We are excited to add Blockbuster.com to the growing list of leading online retailers accepting PayPal."

With PayPal, blockbuster.com shoppers now have a new way to pay for their purchases using debit cards, bank accounts, stored balances, or credit cards through their individual PayPal accounts without sharing their financial information.

The $10 cash-back offer is available through August 31, 2008 with a new paid subscription to any of Blockbuster's online rental subscription plans, including Blockbuster By Mail™ and Blockbuster Total Access™, the company's integrated by-mail and in-store offering.

Initially, blockbuster.com customers will be able to use PayPal as a payment method for their online movie rental subscriptions, but eventually, they will be able to use PayPal as a payment option for all their other transactions on the site, including purchases of new and previously viewed DVDs, BLOCKBUSTER GiftCards and blockbuster.com gift subscriptions. PayPal will also be a payment option for customers who want to rent or purchase digital movies through blockbuster.com's movie downloading service, which will be available later this summer.

About Blockbuster

Blockbuster Inc. (NYSE: BBI; BBI.B) is a leading global provider of in-home movie and game entertainment, with more than 7,700 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at http://www.blockbuster.com/.

About PayPal

PayPal is the safer, easier way to pay and get paid online. The services allows anyone to pay without sharing financial information and gives consumers the flexibility to pay in any way they prefer, including through credit cards, bank accounts or account balances. With more than 60 million active accounts in 190 markets and 17 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company. More information about the company can be found at http://www.paypal.com/.

SOURCE: Blockbuster Inc.

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