This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What Will Dish Network Do With Blockbuster?

By acquiring Blockbuster, Dish would presumably get Blockbuster's streaming rights for the libraries of all the major studios, as well as the Blockbuster brand and customer list. Combined with Dish's wireless spectrum that it has acquired and technology from EchoStar, Kaufman Bros. analyst Todd Mitchell noted that it could feasibly launch a video service.

Still, neither Dish or Blockbuster has had much luck in the past with online expansion. "It's hard for us to believe Dish would be poised to successfully transform Blockbuster from a money-losing bricks-and-mortar movie rental retailer to a scaled subscription online streaming service," Mitchelson wrote.

Blockbuster's relationship with TiVo is also worth noting, and could have some value to Dish, Mitchelson said.

The purchase of Blockbuster seems to be part of Dish's strategy to reposition the company as a two-way hybrid satellite-wireless network with a content offering that combines its current subscription-based satellite broadcast services with a host of wireless on-demand and over-the-top services, Mitchell wrote in a note.

"That said, there would be limitations to either strategy: the studio deals with Blockbuster are likely to be short-termed and may not be renewed; the streaming rights are likely shallow, in terms of number of titles; and Dish may lack the fulfillment infrastructure needed to distribute the titles," he wrote in a note.

While the acquisition will most likely be dilutive to Dish, given its difficulty at adding subscribers, Eagan says it could provide the company with a strategic lift.

Of course, Dish's intentions will be revealed in the coming weeks, but the news is hopeful for those looking to see Blockbuster, in at least some entity, stay alive.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DISH $69.26 0.00%
NFLX $571.55 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs