Blockbuster Taps Accenture to Support New Online Subscription Service

Includes integration, business processes and supply chain management to enable online movie rentals for customers

Includes integration, business processes and supply chain management to enable online movie rentals for customers

New York, Dallas — August 12, 2004 — Blockbuster Inc. said it has engaged the consulting and outsourcing firm Accenture to build and deploy Blockbuster's new online subscription service, which was introduced earlier this week. The new service, BLOCKBUSTER Online, allows consumers to rent movies online and return them at their convenience with self-addressed return envelopes.

BLOCKBUSTER Online is available for a monthly fee of $19.99 and allows subscribers to have up to three DVD movies out at a time plus an additional two free in-store rentals per month.

During the past nine months, Accenture said it worked closely with Blockbuster to build the infrastructure of the new online business, which complements Blockbuster's network of more than 5,000 stores across the country.

Accenture's work included consulting with Blockbuster on building the systems and software necessary to support the service, defining and implementing the product allocation and inventory management functions, launching the distribution centers, and designing the business operations needed to support the complex logistics involved in running an online DVD rental business.

"Blockbuster drew on Accenture's knowledge and experience in technology systems integration, business processes and supply chain management as we built this new business unit," said Shane Evangelist, Blockbuster vice president and general manager of BLOCKBUSTER Online. "With the launch of our online service, we are now delivering a high-quality and innovative subscription service to consumers nationally."

Additionally, Accenture said it assisted Blockbuster with designing and building the Web site, where members keep their personal movie queue of top movie selections. BLOCKBUSTER Online monitors these selections and automatically sends members their first available choices. Subscribers return the movies in postage paid, self-addressed envelopes that can be mailed from anywhere in the United States. Once a movie is returned, Blockbuster ships members another DVD from their movie queue.

"We are very excited about the opportunity to have helped Blockbuster enter this dynamic business," said John Romanow, a partner in Accenture's Media & Entertainment group.