Blockbuster (NYSE:BBI) Lands Deals with Sony (NYSE: SNE), Twentieth Century Fox

Blockbuster (NYSE:BBI) had added deals with Sony (NYSE:SNE) and Twentieth Century Fox to all them to offer movies on the same day they're released on DVD; both in the store and via mail channels.

What this is costing Blockbuster is a first lien on assets of Blockbuster in Canada. Blockbuster Canada will remain the distributor of the movies in Canada.

Sony Pictures Home Entertainment Inc. and Twentieth Century Fox Home Entertainment are now included with Warner Bros., which has signed a similar agreement with Blockbuster in March.

Blockbuster continues to use its Canadian assets to forge deals with the movie studios in hopes of revitalizing the business through making the distribution deals with the big studios.

All of this is taking place as part of the strategy of Blockbuster to prepare to raise capital in order to become a viable company once again.

Another important part of their strategy is to cut costs while paying down their debt.

The two have to work together as Blockbuster must generate revenue while dealing with its operational cost issues. They both must be tackled together, the reason they're throwing everything they have at securing the deals with the studios.

More pressure is on the company to perform, as the New York Stock Exchange contacted them recently saying the ticker symbol of Blockbuster has fallen below the required listing standing of the exchange in relationship to the global capitalization level of the firm.