Live Nation Inc. said it has made Blockbuster Inc. a preferred outlet for selling tickets for its concerts and live events around the country.

The deal is expected to drive traffic to Blockbuster’s 500 stores and give Live Nation an alternative venue to online sales in its ticketing operation that will launch next year. The three-year deal gives Dallas-based Blockbuster exclusive blocks of tickets starting in January after Live Nation’s contract with TicketMaster ends.

Live Nation Chief Executive Nathan Hubbard said Blockbuster will be a strong marketing partner to drive incremental ticket sales to his events.

“This deal with Blockbuster represents the next step in the rollout of our new ticketing system,” Hubbard said in a statement. “Our research definitively shows that the vast majority of music fans who prefer to buy their concert tickets at a retail location find Blockbuster to be the most convenient choice. ”

As DVD rentals from brick-and-mortar stores have slowed, Blockbuster has worked to reinvent its locations into broader-based entertainment “convenience stores.” Blockbuster will charge a nominal fee for each ticket it sells, the companies said.

Live Nation’s shares were up 37 cents, or 10 percent, to $4.21 in morning trading on the New York Stock Exchange.