In a continued effort to stabilize its video rental business, Blockbuster announced a new agreement with Sony Pictures Home Entertainment Inc. and Twentieth Century Fox Home Entertainment LLC.

The deal is structured to provide day and date availability of movies for Blockbuster's store and movies-by-mail service. Following on its recent deal with Warner Home video, Blockbuster is focused on securing a steady flow of new releases and top rated movies for its customers.

In addition, the deal ensures favorable payment terms to help Blockbuster manage its ailing financial books. From all indications, the company intends on staying in the video rental business, and dismisses any talks about its imminent demise.