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June 2, 1994


By CBR Staff Writer

The IBM Corp-Blockbuster Entertainment Corp initiative to create the means for delivering music tracks to record stores from a database so that the retailer could create custom compact disks in the store has stalled because the record companies don’t like the idea of their catalogues being exploited that way, but the pair are trying again with a plan to test the electronic distribution of video-game rentals in Blockbuster Video stores this summer: the joint venture, NewLeaf Entertainment, is working with Fairway Technologies, another IBM-Blockbuster company, to develop computer networks that can deliver digital entertainment on demand in retail stores; the information will be stored in small server computers located in the retail outlets or in host computers linked to the servers; stores will hook different components on to the servers to print the information in the appropriate format; expanding the rental market would help video game sales, as most buyers of cartridges rent them first to decide if they are worth buying but there’s no indication of the cost per store; Sega Enterprises Ltd is taking an interest in the development effort.

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