Netflix Dishes About Blockbuster Deal
NEW YORK (TheStreet) -- Netflix (NFLX) believes Dish Network (DISH) could become its latest competitor following its acquisition of Blockbuster.
"We really don't know what Dish is up to, but presumably they paid a couple hundred million for Blockbuster -- not for its technology but for its brand," Chief Executive Reed Hastings said on a call with Wall Street. "It's a well-known brand. And they would do that; it would be consistent to do that if they had plans to launch a service with a fair amount of content and a fair amount of marketing such that it would make sense to pay $300 million to be able to use the Blockbuster brand."
>Netflix Stock Falls On Outlook
Netflix, like many analysts, believes Dish Network will "launch a substantial subscription streaming effort under the Blockbuster brand," the company said in a letter to shareholders.
>What the Blockbuster Buyout Means For Netflix Dish Network made the winning bid of $320 million for Blockbuster earlier in the month. Dish said last week in a court filing that it plans to keep open about 500 Blockbuster stores. The flailing movie retailer currently has about 1,700 remaining locations. --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: tips@thestreet.com.
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