IFC Entertainment, Blockbuster Ink Exclusive Rental Deal

NEW YORK, March 5: In a
two-year agreement, IFC Entertainment, a subsidiary of Rainbow Media Holdings,
has granted Blockbuster the exclusive U.S. rental rights for its independent
films.

The agreement enables IFC
Entertainment to reach a broader audience for its films through Blockbuster's
stores, by-mail subscription services and digital downloading service
Movielink.com.

Titles to be exclusively
available for rental at Blockbuster include: Gus Van Sant's Paranoid Park, which opens theatrically on Friday, March 7, and
was recently nominated for three Independent Spirit Awards; Tom Kalin's Savage
Grace, which stars Julianne Moore
and was screened at this year's Sundance Film Festival; Hannah Takes the
Stairs, a critically-acclaimed
film by Joe Swanberg; and Dans Paris, a French-language film directed by Christophe Honore.

Under the terms of the
agreement, IFC and Blockbuster will share rental revenues from IFC titles.
Blockbuster will have an exclusive 60-day rental window, including both the
physical and digital rental distribution channels for each title as it becomes
available. During this period, no title will be available on a retail basis in
any format. After the 60-day period, the IFC titles will be available on a
non-exclusive basis both for retail and digital distribution. However,
Blockbuster will retain the exclusive physical rental distribution rights for
IFC titles for three years after each street date.

In addition to carrying
IFC titles in its stores nationwide, Blockbuster has installed special
independent film sections in approximately 1,000 of its locations, which will
include not only IFC titles but also independent movies from a variety of
distributors. Blockbuster also plans to highlight IFC titles on blockbuster.com
and on Movielink.

Independent
home-entertainment distributor Genius Products serves as the sales agent for
IFC Entertainment.

"We're delighted to
join with Blockbuster as we continue our mission of making independent film
available to the widest possible audience," said Lisa Schwartz, IFC's
senior VP of sales and business development. "Blockbuster's national store
network combined with its by-mail and downloading services, made this a
particularly appealing agreement for us because it gives millions of customers
increased access to our movies."

Added Keith Leopard, the
director of film product at Blockbuster, "This agreement with IFC is a
great opportunity for Blockbuster to provide our customers with convenient
access to the best of independent film," "Whether it's through our
stores, through the mail or through digital downloading, our customers will
have access to some of the most exciting, thought-provoking films the indie
filmmaking world has to offer. We look forward to working with IFC to
dramatically expand our selection of independent titles and to being the
exclusive rental outlet for films that otherwise might not have gotten exposure
to such a broad audience."

—By Irene Lew