June 28 (Bloomberg) -- Blockbuster Inc., the world's largest video-rental chain, said industrywide U.S. store rentals declined more than it expected this year, and the company plans to close 282 locations.

Blockbuster, which has more than 8,000 stores worldwide, said revenue from customers who rent movies and TV shows in stores has fallen 13 percent across the industry this year from the same period in 2006. That's more than the 7.5 percent decrease previously forecast by Dallas-based Blockbuster.

Online rentals in the U.S., including sales of competitor Netflix Inc., will bring in $1.9 billion this year, up 46 percent from the previous year, the company said, citing Adams Media Research.

Revenue from in-store rentals will rise in the third and fourth quarters because of ``a more favorable release slate'' of movies, Blockbuster said.

Shares of Blockbuster fell 6 cents to $4.10 at 5:57 p.m. after declining 4 cents to $4.16 in New York Stock Exchange composite trading today.

Shares of Los Gatos, California-based Netflix fell 93 cents, or 4.5 percent, to $19.85 in Nasdaq Stock Market composite trading.

Blockbuster closed 290 stores in 2006, according to a filing with the Securities and Exchange Commission.

To contact the reporter on this story: Danny King in Los Angeles at dking19@bloomberg.net.

Last Updated: June 28, 2007 18:24 EDT