DISH Network on Tuesday confirmed what many in the industry were predicting: The satellite provider will go head to head with Netflix by launching a streaming-video subscription service via Blockbuster, which it acquired in April for $320 million.
Netflix pretty much drove Blockbuster and its ubiquitous video stores into bankruptcy, so why should we believe the former video giant could come back and rival the current champ, especially considering Netflix has well over 20 million subscribers?
Joe Clayton, DISH president and CEO, isn’t blown away by Netflix’s giant head start. "Everybody's enamored with Netflix. Who's to say we can't do the same thing?" Clayton said in an interview with the Los Angeles Times.
In buying Blockbuster, DISH certainly got access to a big movie library and has a built-in relationship with Hollywood studios. The company has also begun buying $3 billion worth of broadband spectrum. Next up will be the development of a Blockbuster-branded streaming video service. Clayton didn’t say when that will happen, but he implied that it wouldn’t be too far off.
Clayton further told the Times that his company plans to keep almost 90 percent of Blockbuster’s retail outlets open for business, but the focus will be divided among three missions: DVD rentals and sales; a potential wireless business – details are scant – and a promotional vehicle for the upcoming streaming service.
Source: DISH Confirms Streaming Subscription Service for Blockbuster Acquisition
Netflix pretty much drove Blockbuster and its ubiquitous video stores into bankruptcy, so why should we believe the former video giant could come back and rival the current champ, especially considering Netflix has well over 20 million subscribers?
Joe Clayton, DISH president and CEO, isn’t blown away by Netflix’s giant head start. "Everybody's enamored with Netflix. Who's to say we can't do the same thing?" Clayton said in an interview with the Los Angeles Times.
In buying Blockbuster, DISH certainly got access to a big movie library and has a built-in relationship with Hollywood studios. The company has also begun buying $3 billion worth of broadband spectrum. Next up will be the development of a Blockbuster-branded streaming video service. Clayton didn’t say when that will happen, but he implied that it wouldn’t be too far off.
Clayton further told the Times that his company plans to keep almost 90 percent of Blockbuster’s retail outlets open for business, but the focus will be divided among three missions: DVD rentals and sales; a potential wireless business – details are scant – and a promotional vehicle for the upcoming streaming service.
Source: DISH Confirms Streaming Subscription Service for Blockbuster Acquisition