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DISH Network Agrees to Acquire Blockbuster Assets

Discussion in 'General DISH™ Discussion' started by klang, Apr 2, 2011.

  1. SamC

    SamC Hall Of Fame

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    Odd.

    First, this is not a real estate deal. Blockbuster does not own 99.9% of its stores. Under bankruptcy, DISH can either affirm or break any lease it wants. In any event, it has to start paying rent again on all of these places if it keeps them. And do what with them? Rent videos? Umm, that is where this story started. Sell dishes? Sell dishes from storefronts in strip malls in the suburbs? What an original idea. If you remember the K-Mart / Sears deal, it WAS a real estate deal. Both chains owned a very large number of big boxes.

    Second, it gets the "intelectual property". Esntually the name "Blockbuster". DirecTV had a deal to label its PPV as "Blockbuster" for a year or so. I did not notice any change in its offerings or its rental rates. Somebody is going to be more likely to rent a video because its called "Blockbuster" and not "DISH"?

    Third, it gets this internet business. OK. Different from Netflix exactly how? To me this just reinforces the ONLY advantage cable has over DBS, which is internet bundling. DISH does not even have faux-bundling deals with any phone companies except Frontier. And the "vending machine" business. At gas stations. Hard to put dishes in vending machines.

    Lastly, it gets lots of data. People that rent a lot of videos? Maybe because their cable sucks? What an original idea.

    Oh, and it gets lots of franchisees, who have no interest in selling dishes, and lots of operations outside the USA, where it cannot dell dishes.

    I do not see the math. My bet is that DISH takes the intelectual property and the internet business, sub-liscenses the vending machines, and resells the rest to a liquidator. The B&M video rental store is just not a viable business today. The B&M DBS store never was.
     
  2. WestDC

    WestDC Well-Known Member

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    Spend money to make money-The one thing that it gives dish upfront is a NAME that is recognized "Brand Name" familiar with an already customer base in place, might be a good thing for them, If you don’t take a risk ,you can’t make a gain.
     
  3. olguy

    olguy Hall Of Fame

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    Netflix is all you can eat for 1 price. Blockbuster, like Dish is pay per view. For folks that watch 2 or 3 movies a week it's a big difference.

    And the cable DVR I had for a 30 day trial will never make any bundle price worth it:p
     
  4. gully_foyle

    gully_foyle Hall Of Fame

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    There are synergies. The online service is something that has customers and technology in place and could continue even if the number of stores decreases markedly (something I'd expect, with mostly rural stores remaining if any).

    Amazon bundled a Netflix Lite service in with their existing Amazon Prime. Why can't DISH add an online streaming service to its satellite offerings? Why is it such a loser idea?
     
  5. Stuart Sweet

    Stuart Sweet The Shadow Knows!

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    I wish them all the best. Still, there must be much smarter people than I over there because I can't see what anyone would want with Blockbuster.
     
  6. Justin23

    Justin23 Hall Of Fame

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    Blockbuster is a dying brand name, IMO. :confused:

    The question I have is Blockbuster a profitable/marketable brand name?
     
  7. RAD

    RAD Well-Known Member

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    Dripping...
    But my question would by why would they need to buy Blockbuster in order to do this? Doesn't Dish already have an infrastructure in place to stream content with their DishOnline?
     
  8. jacmyoung

    jacmyoung Hall Of Fame

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    You are not alone, most industry analysts or news media had no clue what Charlie is going after. Since no smart people know why, let me venture a guess for the sake of guessing, at the risk of being called a conspirator by some:), Charlie's shopping spree, the Blockbuster deal being one of them, is in some way telling the world he can see value when he sees it, no matter how little it may make sense to the others, and he can pay big bucks if he wants to for such value.

    He just doesn't want to pay TiVo:)
     
  9. MysteryMan

    MysteryMan Well-Known Member DBSTalk Club

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    Maybe they will change the name to "DISHbuster". Has a nice ring to it.
     
  10. WestDC

    WestDC Well-Known Member

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    May be dying to you and Me But not for others? I wouldn't have bought it even if I could have affored it.

    He (Charile) May be buying it to off set profits so as NOT to PAY additional or any Goverment Taxes--Only the IRS knows for sure :D
     
  11. klang

    klang Hall Of Fame

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    Near...
    That is what confuses me as well. Perhaps Blockbuster holds favorable contracts with some of the studios?
     
  12. Newshawk

    Newshawk Hall Of Fame

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    Broken...
    Not really. It sounds like a cable marketer's wet dream.
     
  13. JosephB

    JosephB Icon

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    I think this is genius. Think about it:

    1. 1,700 retail locations. Instantly DISH has payment centers, equipment drop-off and pick up centers, and sales showrooms. The local cable company has a few local places where you can stop in and see someone in person, now DISH can do that too. Even if they close a big chunk of them. Plus, SOME of them have to be making money. If they are all in the red, they would have closed them all instead of just some of them.

    2. Relationships with movie companies. More importantly, now DISH represents PPV, streaming, and physical rentals (in all three sub-markets: mail, vending machines, and in full-on stores). This gives them incredible leverage with the studios.

    3. It's a hedge against Netflix. Imagine that you now get Blockbuster streaming service with your America's Everything Package--including access through the website and any devices that support it. Now imagine integrating your Sling-enabled receivers into that same website. Plus, they can keep Blockbuster online available as a stand alone product and make a little money from the people that refuse to get cable/satellite. And, they can market DISH service to all those people.

    4. The brand. It's still worth a LOT of money. Satellite/media nerds may think it's a dead brand, but at a very minimum I guarantee DISH Cinema will be rebranded to Blockbuster PPV/Cinema/whatever. I don't think it would be outside the realm of the possible that DISH rebrands the entire company and service to Blockbuster, but, that is a long shot.

    The only thing left is a broadband/cell phone company. If I had to guess, I'd bet that he makes a bid for Clearwire and/or Sprint at some point. Combine those two with the spectrum he picked up earlier this year, and you have a full wireless company that can completely compete with any cable or phone company.
     
  14. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    Have you used Blockbuster streaming? It's horrible and nothing like Netflix. The free titles are barely worth being free & everything else is PPV.
     
  15. DodgerKing

    DodgerKing Hall Of Fame

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    This makes no sense at all. Not only should he not have bought it, he probably shouldn't take it if someone payed him

    Sent from my iPhone using DBSTalk
     
  16. jacmyoung

    jacmyoung Hall Of Fame

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    All your points have been analyzed by smart people, the math just did not add up.

    That can definitely be on Charlie's mind, but we are talking billions not millions.

    What about the 700mhz spectrum they own? Can it be used to deliver Blockbuster type of service nation wide?
     
  17. JosephB

    JosephB Icon

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    Why would Charlie run it like Blockbuster run it? That strategy got them bankrupted. With his relationships with content, Charlie could beef it up and make it a competitor to Netflix. Hollywood wants to take Netflix down a peg or two already as it is.
     
  18. Stuart Sweet

    Stuart Sweet The Shadow Knows!

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    I respect your opinion but mine differs.

    I'm not sure why Dish would need brick-and-mortar locations unless they were planning to disenfranchise all their dealers.

    It is my opinion that the long-standing relationships of which you speak actually killed Blockbuster. Those relationships prevented them from being price-competitive on retail sales, limiting a potentially large source of walk-in traffic. Plus, according to sources who have worked there, Blockbuster was not paying much less for DVDs than you would if you went into Wal-Mart. With all that purchasing power, it makes sense that the reason was poorly written purchase contracts.

    Here I would agree except that Blockbuster's services have been unsuccessful against Netflix. In popular perception, they are a failure. One would be better off with no reputation than a bad reputation.
    Here I think you actually have a point. As we move into an IPTV-dominated future, the name "dish" actually may hold the company back. Rebranding now may make sense.

    The strategy of aggregating failing companies hasn't worked well in the past. At one point, Corel sought to build an empire based on competitors to Adobe and Microsoft. They bought WordPerfect, Novell, Xara, Paint Shop Pro, Borland... all strong companies at one point with formerly-flagship products. The strategy didn't work. A large pile of poo is still poo.
     
  19. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    What relationship? He'll have to spend A LOT more money to get the rights to content on par with Netflix.
     
  20. DodgerKing

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    That is an awful lot of money to spend on just name rights
     

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