Live Nation makes Blockbuster its retailer

Blockbuster will offer customers exclusive blocks of tickets at some stores during the first four hours events go on sale. (Ron Heflin/Associated Press/File 2006)

NEW YORK - Live Nation Inc., the US music promoter competing with Ticketmaster Entertainment Inc. for concert ticket sales, named movie rental chain Blockbuster Inc. as its physical retailer.

Blockbuster will offer customers exclusive blocks of tickets at about 500 stores during the first four hours events go on sale, the companies said yesterday in a statement. General tickets will also be available through the chain. Financial terms of the three-year deal weren't disclosed.

The agreement follows Live Nation's exclusive deal, disclosed in September, to sell tickets for North American venues controlled by SMG, a manager of 216 facilities in the United States, including arenas and stadiums. Beverly Hills, Calif.-based Live Nation, the biggest US concert promoter, also will begin selling tickets for its own events next year after its arrangement with Ticketmaster expires this month.

Ticketmaster, the biggest US ticket broker, sells tickets online and through 2,000 retail outlets, including Macy's department stores and Giant Eagle supermarkets, according to its website. The company added a stable of musical acts, including the Eagles, by acquiring Front Line Management Group in October. It has also dropped surcharges from the sale of some tickets, The Wall Street Journal reported last month.

Live Nation shares have tumbled about 60 percent in the past month as the recession threatens to reduce ticket sales next year. The company, which is divesting nonmusic assets, sold its motor sports division to Feld Entertainment Inc. for $175 million in September.

Blockbuster, based in Dallas, reported a narrower third-quarter loss after increasing the number of titles it stocks, spurring higher sales of DVDs and related merchandise and helping fuel a turnaround in US stores. A deal with Live Nation could lure more customers through its doors.

Live Nation declined 3 cents to $3.81 in New York Stock Exchange composite trading. Blockbuster, which climbed 16 cents to $1.18, has dropped 70 percent this year. Ticketmaster, spun off from Barry Diller's IAC/InterActiveCorp in August, fell 15 cents to $4.03 on the Nasdaq Stock Market.