Video rental chain Blockbuster Inc. said on Wednesday it settled a patent dispute with rival Netflix Inc. that challenged Blockbuster’s entry into online DVD rental, but it signaled that the new business was taking a toll on its finances.

Although terms of the settlement were not disclosed, shares in Netflix jumped more than 6.3 percent to $20.76 in early trading while Blockbuster slipped 1 percent to $4.17.

Blockbuster also disclosed in a securities filing on Wednesday that it plans to seek an amendment to its August 20, 2004 credit agreement that would lower earnings requirements.

Blockbuster said in the filing that it plans to modify its popular Total Access plan before the end of the year to “strike the appropriate balance between continued subscriber growth and enhanced profitability.”