AtomFilms, a pioneer and leader in next-generation entertainment, announced

that it has entered into an agreement with Blockbuster, the global leader

in rentable home entertainment, for selected, syndicated, short-form,

digital content from AtomFilms to be video streamed on a co-branded section

of blockbuster.com. Beginning Spring 2000 and lasting for 2 years,

AtomFilms will provide both content and streaming-related technologies for

the short-form content component of the Blockbuster Web site. The

partnership helps grow the offerings on blockbuster.com and moves the

company closer to its long-term goal of electronically delivering

entertainment into the home. This deal comes on the heels of last month's

announcement that TiVo, the creator of personal television, will develop

video on demand for blockbuster.com. In addition, Blockbuster signed a

multi-year strategic partnership with America On-line to produce broadband

content and delivery opportunities. Also in January, Blockbuster announced

an agreement with Metro-Goldwyn-Mayer Inc. to test and develop a business

model to make selected MGM films available for digital streaming and video

downloading via the Internet and other home delivery technologies.