Blockbuster offers 99-cent DVD rentals

(For other news from the Reuters Media Summit, click here)

(Adds comments on lease renegotiations, debt, bylines)

By Sue Zeidler and Anupreeta Das

NEW YORK, Dec 4 (Reuters) - DVD rental company Blockbuster Inc (BBI.N) said it will offer 99-cent DVD rentals for the first time to lure customers in tough economic times, and it is also renegotiating one-third of its store leases to cut costs.

"We do have plans in the month of January to more aggressively roll throughout the system a value offer that will include movies in the 99 cents price range," Blockbuster Chief Executive Jim Keyes told the Reuters Media Summit on Thursday.

"The 99 cents plan is targeted at the value-conscious consumer in this challenging economy," he said, noting the company has spent the last year testing various pricing plans.

Blockbuster, which has sought to reposition itself to compete in a market where viewers download videos or receive them by mail, had not yet determined final details of the 99 cents plan, which could include offering DVDs for a day or for several days across various markets.

The company's shares fell 4 cents or 3.23 percent to $1.20 a share on the New York Stock Exchange.   Continued...