Blockbuster Announces Program With Earful of Books

Blockbuster Inc., the global leader in rentable home entertainment, has announced an agreement with Austin, TX-based Earful of Books, Inc. (EFOB), the nation's largest chain of audiobooks-only "superstores."

Earful entered into an agreement with Blockbuster Marketing Solutions, a division of Blockbuster Inc., which was established late last year by Blockbuster to market the company's database capabilities, brand and media assets. Earful previously announced its plan to develop 150 new Franchise and company stores throughout major markets and will utilize a variety of support services from Blockbuster Marketing Solutions to develop and place both grand opening and ongoing advertising and marketing programs in retail markets shared by both companies.

The first markets to implement marketing programs developed jointly between Blockbuster Marketing Solutions and Earful are Rockville, MD, Redmond, WA, Mission Viejo, CA and Roanoke, VA. Future retail store development will include the major markets of Los Angeles, San Francisco, Phoenix, Boston, Chicago, Miami, Philadelphia, New York and Atlanta.

"We are excited to work with Earful of Books to use our powerful marketing programs and customer relationship management tools to launch them into new markets, said Greg Smogard, president of Blockbuster Marketing Solutions. "They understand clearly that targeted customer acquisition, retention and loyalty will be key to their success."

"Certainly, no other retailer has had the success of building a brand and creating customer loyalty as has Blockbuster. The opportunity to work with Blockbuster Marketing Solutions will help us expand and grow quicker and smarter," said Paul Rush, president and founder of Earful and current president of the Audio Publisher's Association (APA) trade group.

Jenny Frost, President and Publisher of Random House Audio, commented, "We're enormously pleased to know about the enthusiasm and support Blockbuster is bringing to the audiobook business through its alliance with Earful. It can only help fuel consumer awareness of audiobooks."

Earful of Books retail superstores offer up to 7,000 titles of books -- abridged and unabridged on cassette or compact disc -- for rent or purchase. Customers also can order from another 56,000 available titles by calling 1-800-5-EARFUL. By contrast, a major bookstore may carry only 500 to 1,000 titles and it does not rent audiobooks.

The eight-year-old chain, which launched an aggressive Franchising program in 1998, now has more than 100,000 members at 14 stores, including locations in Texas, New Jersey, North Carolina, Ohio and Wisconsin. Earful currently has 32 new stores under contract in areas that include California, Florida, Oregon, Virginia and Washington State.

In the past seven years, annual revenues for the audiobooks industry have climbed steadily from $1.2 billion to more than $2.3 billion. The most loyal listeners are 35 to 64 years old, married, college-educated, professionals with upper middle income. Earful customers, often termed "Road Scholars," are as diverse as commuters, leisure travelers, college students, fast-paced business executives, and ADD/Dyslexic students.

Blockbuster Inc. is a publicly traded subsidiary of Viacom Inc. and is the world's leading renter of videos, DVDs and video games with approximately 7,200 stores in the United States, its territories and 26 other countries. The company may be accessed internationally at blockbuster.com. Viacom Inc. is one of the world's largest entertainment and media companies and a leader in production, promotion and distribution of entertainment, news, sports and music.