What the Blockbuster Buyout Means for Netflix
While Dish Network has yet to reveal exactly what it will do with Blockbuster, one possibility is creating a subscription streaming service to compete with Netflix.
By acquiring Blockbuster, Dish would presumably get the company'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 sister firm, EchoStar, Kaufman Bros. analyst Todd Mitchell noted that the joint entity could feasibly launch a video service.If successful, what would this mean for Netflix? At least in the short term, probably not much. Netflix boasts 20 million subscribers to its DVD-by-mail and subscription programs. >What Will Dish Network Do With Blockbuster? But the company has been intently focused on growing its streaming base, rolling out a streaming-only package for $7.99, late last year. It is also aggressively expanding its streaming library, recently announcing it won first-streaming rights for "House of Cards," a new series starring Kevin Spacey and directed by David Fincher. Netflix also began streaming episodes of "Glee," "The Wonder Years," and "Sons of Anarchy" in a new deal with Twentieth Century Fox. >Blockbuster Timeline: From Opening to Closing Credits And on Wednesday, the company said it will begin streaming episodes of "Mad Men" after entering into an agreement with Lionsgate. It's also worth noting that neither Dish nor 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," Deutsche Bank analyst Doug Mitchelson wrote in a note. --Written by Jeanine Poggi in New York.
>To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV