Message-ID: <15644350.1075848327641.JavaMail.evans@thyme> Date: Fri, 9 Mar 2001 14:10:00 -0800 (PST) From: enron.announcements@enron.com To: all.employees@enron.com Subject: Enron ends exclusive agreement with Blockbuster Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Enron Announcements X-To: All Enron Worldwide employees X-cc: X-bcc: X-Folder: \Edward_Baughman_Nov2001\Notes Folders\Discussion threads X-Origin: BAUGHMAN-E X-FileName: dbaughm.nsf As you are aware, Enron signed an agreement with Blockbuster Inc. last summer to launch an entertainment on-demand service. We announced today that we are discontinuing our exclusive relationship with Blockbuster in order to expand the offering by developing direct relationships with content providers and distribution partners. We have made tremendous progress toward our goal of becoming the leading provider of entertainment on-demand over a digital platform. We rolled out the trial service in Seattle, Portland, Salt Lake City and New York in December, and today subscribers are buying movies on-demand using the service we created. However, the exclusive relationship with Blockbuster has not yielded the quantity and quality of movies needed to drive demand for this exciting, new on-demand service. Now that we have proven the concept, we want to take our service to the next level by adding content and subscribers on an accelerated basis. We feel that this can be best achieved by pursuing entertainment on-demand independently. We intend to initiate discussions with various content providers for delivering their content over the Enron platform. We remain very positive about the potential of this business for EBS and Enron and will keep you apprised of our progress.