Dish Network bids for Blockbuster at the last minute before the bidding deadline.

[flyingsquirrel]

This is clearly NOT about the stores or that type of Brick and Mortar distribution system.

I would guess it is about the Brand (says as much in the statement) and perhaps about inheriting distribution agreements.

However, many distribution agreements do not survive a change in ownership, so that may be of limited value. But that may not matter. I have been wondering about the nature of Dish's agreements with content providers. Why are Fox, Discovery, et. al. suing other providers for making content available on iPads and not suing Dish for essentially the same thing?

Whether the Brand is worth the money depends on what they do with it. I would guess that they might be rebranding Dishonline to Blockbuster, or they could make Blockbuster the brand name for Sling entertainment offerings. Or both.

So if Dish is able to legally redistribute content on Sling and Dishonline, wouldn't it be better to expand that and rebrand it as Blockbuster to non-subscribers? Make Blockbuster the name for some IPTV entertainment service separate from Dish.

There are all kinds of things like that. The name Blockbuster would be handy to have in a fight where the main enemy is apparently Netflix.


On balance, probably a reasonable investment. It's rare that such a well-known name becomes available.

 

[Juan]

he could reimage dish network..drop all the sports and call it Block Buster satellite movie service..wait he is dropping all the sports....

 

[Scott Greczkowski]

I remember quite a few years ago DIRECTV was in a deal with Blockbuster and they sold DIRECTV in the stores and all the DirecTV PPV channels were called "Blockbuster PPV"

 

[Hall]

The name Blockbuster would be handy to have in a fight...

5 years ago, yes. Today ? I don't know... Most people only hear about "Blockbuster closing their (fill-in-the-blank) store" nowadays.

 

[RandallA]

he could reimage dish network..drop all the sports and call it Block Buster satellite movie service..wait he is dropping all the sports....

He did already!

 

[lakebum431]

Content owners have all the leverage. If Netflix and its customers won't pay what the studios want then there is nothing stopping them from setting up their own streaming services.

Jim

The problem with that is you have to be able to get your service to the consumer. That means developing an application that can be added to every TV, BluRay player, game system, portable device etc. and then actually getting on there. I have Netflix on my 2 iPads 2 iPhones, built into two Panasonic TVs, PS3 and Wii. I have no desire to have several different apps (one from each studio) and search through them to find the show that I want from the production studio that made it. I want it all in one place (as I expect most consumers do).

 

[Hemi 6.1]

I remember quite a few years ago DIRECTV was in a deal with Blockbuster and they sold DIRECTV in the stores and all the DirecTV PPV channels were called "Blockbuster PPV"

When was that, The 1990's?

 

[Hemi 6.1]

Never Mind it was during the Time I wasn't a directv subscriber From 2000-2002
Investor Relations | Press Release=

 

[kikenovic]

Good for them. They have the $ to buy Blockbuster but not for the extra Twinkies games.

 

[jayn_j]

The problem with that is you have to be able to get your service to the consumer. That means developing an application that can be added to every TV, BluRay player, game system, portable device etc. and then actually getting on there. I have Netflix on my 2 iPads 2 iPhones, built into two Panasonic TVs, PS3 and Wii. I have no desire to have several different apps (one from each studio) and search through them to find the show that I want from the production studio that made it. I want it all in one place (as I expect most consumers do).

Well, actually, I have Blockbuster streaming as an option on my TIVO and I believe it was added to my Panasonic BluRay player.

I also see it as a way of getting exclusive rights and then getting a foothold into cable systems that are struggling to make their own limited PPV work.

 

[JosephB]

This is a great hedge against Netflix. Imagine bundling Blockbuster streaming service (with any/all the devices that support it) with Dish network service, as well as keeping it as a separate product. Not everyone can or is willing to buy satellite TV service. Netflix isn't going away. So, if you can't fight 'em, join 'em. Plus, Dish instantly picked up 1,700 retail locations that can serve as payment centers, equipment drop-off and pick up centers, and sales floors. And that doesn't even mention the Blockbuster brand. I had the thought before I read the above post, that it wouldn't be outside the realm of possibilities for DISH to rebrand their service to Blockbuster. At a very minimum, I can promise Dish Cinema will now be Blockbuster branded.

 

[lakebum431]

Well, actually, I have Blockbuster streaming as an option on my TIVO and I believe it was added to my Panasonic BluRay player.

I also see it as a way of getting exclusive rights and then getting a foothold into cable systems that are struggling to make their own limited PPV work.

That's my point. Blockbuster, Netflix, Amazon are the big ones that are already on devices. My comment was in response to the comment that the content owners have all the power and they can just start their own service. They can, but I don't want to have to know the studio that made the programming I'm searching for, and I sure don't want to have to be a member of 4 or 5 or 10 different services to have access to all the content.

 

[king3pj]

I remember quite a few years ago DIRECTV was in a deal with Blockbuster and they sold DIRECTV in the stores and all the DirecTV PPV channels were called "Blockbuster PPV"

He does plan on keeping at least some of the stores open and selling dish service in them according to the wall street journal article that came out this morning.

Dish Network Wins Blockbuster - WSJ.com

"Dish, led by satellite-television billionaire Charles Ergen, has expressed interest in using some Blockbuster stores to sell subscriptions to its service, one of the people said. Dish also is interested in possible synergies from Blockbuster's on-demand business, this person said. Dish views Blockbuster as a "going concern," this person said, in contrast to some other bidders who considered liquidating the company."

Updated: I don't think you can access the link I posted unless you are a subscriber of the Wall Street Journal online edition, but I included the quote for everyone.

 

[yaz96]

To all those who think Dish can just show these movies on PPV or On-Demand or start Blockbuster Satellite Movie Service. Unless Blockbuster owns the rights to that type of broadcast distribution, Dish can't do squat with them.
All of those different kinds of distribution channels are negotiated separately. Dish will only be able to use the movies how BB has used them with their current contracts.

 

[ReconPJ]

Dish keeps buying things and uyng things and they are losing subscribers. They are not growing by any means when they make these purchases. (Even Slingbox was great, but its not gathering any more customers). ow about give the subscribers what they want....

 

[David Taylor]

Instead of wasting money on worthless "assets" why not give consumers what they really want? Specifically, do sports RIGHT. Give us all of our games in HD. Give us 24x7 RSNs. You spend a few hundred million on garbage but cheap out when it comes to things that matter? Do you have a clue, Charlie?

 

[Hemi 6.1]

Dish keeps buying things and uyng things and they are losing subscribers. They are not growing by any means when they make these purchases. (Even Slingbox was great, but its not gathering any more customers). ow about give the subscribers what they want....

Sling is nothing new , and you don't need to Subscribe to Dish and Pay premium Prices for a 922 to use a sling box.

Thats why it flopped!

Most people don't have time to watch TV on the go!

 

[pinoyscorpion951]

So Blockbuster has first run movies 28 days earlier than Netflix or Redbox, free Blu Ray access, and the ability to return in store provided there is one conveniently located. I had downgraded from AEP to AT250 because I had subscribed to Netflix. If Dish incorporates this business model into what they currently offer and sweetens the deal by lowering the price point for BB subscription, sign me up! Goodbye Netflix. I know many subscribers who have dropped their movie packages for Netflix or Redbox. I guess this is one way for Dish to get some of those people back eventually.

 

[king3pj]

So Blockbuster has first run movies 28 days earlier than Netflix or Redbox, free Blu Ray access, and the ability to return in store provided there is one conveniently located. I had downgraded from AEP to AT250 because I had subscribed to Netflix. If Dish incorporates this business model into what they currently offer and sweetens the deal by lowering the price point for BB subscription, sign me up! Goodbye Netflix. I know many subscribers who have dropped their movie packages for Netflix or Redbox. I guess this is one way for Dish to get some of those people back eventually.

Yeah, I canceled my netflix account a few months ago for blockbuster because of the new releases on day one and the ability to exchange movies in the store so I hope dish doesn't shut it down. Free blu-ray is a nice touch too. Netflix was a much faster turnaround for new discs for me though. I could put it in the mail on Monday and have a new disc arrive by Wednesday almost every time with netflix. With blockbuster it will arrive on Wednesday occasionally, but its usually Thursday and sometimes even Friday. Both companies have their distribution center in Lansing MI, which is about 45 minutes away from my home so I don't understand the time difference.

Blockbuster also includes video game rentals for free too. I take advantage of that pretty often with my 360. Streaming is much better with Netflix. Blockbuster charges a few dollars per rental but has newer movies available to stream. I like Netflix's unlimited model much better.

 

[fbara]

I think Charlie will have 3 days to return the offer for Blockbuster, otherwise he'll have to pay $4.99/day in late fees....