International News - Blockbuster sued in video dispute

Blockbuster, the US video rental specialist, is being sued for US$120 million (£74.6 million) by entertainment giant Walt Disney for breach of contract.

Disney alleges that promises made in a video supply contract dating back to 1997 were consistently broken.

A revenue-sharing arrangement had been struck to allow Blockbuster to pay lower upfront fees for its videos. Disney argues that promotional costs were improperly deducted and that videos went missing.

Blockbuster, which rejects the claims, ended the agreement in 2001 after complaints from Disney.