Blockbuster and ActiveVideo announce an agreement that is designed to enhance the consumer VOD and EST experience of the BLOCKBUSTER On Demand movie service across multiple connected platforms.

This relationship is intended to leverage the core products of both companies including the extensive library of BLOCKBUSTER On Demand content by combining Blockbuster digital assets with the ability of ActiveVideo to process Web-based user interface in the network "cloud" -- the relationship creates a superior digital cinema experience in the home. Viewers will be able to search, find and view titles of interest by incorporating previews and trailers, as well as Web-based search and recommendation capabilities.

Because the ActiveVideo CloudTV platform can enable rich user interfaces to any digital set-top box or broadband connected CE device, the Blockbuster UI being developed by ActiveVideo can serve as a gateway to BLOCKBUSTER On Demand services that are currently being deployed.