Dish Has Funny Plans for Blockbuster

NEW YORK ( TheStreet) -- Dish Network ( DISH) will use a dose of comedy when it comes to integrating its Blockbuster acquisition.

During its first-quarter conference call with Wall Street, Dish's Chief Executive Charlie Ergen, equated the satellite company's recent acquisition strategy to an episode of Seinfeld.

" I would say that we're utilizing what I call the Seinfeld strategy, which is if you ever watched a Seinfeld show there's a lot of things that happen the first about 28 minutes of the show where you didn't know exactly where that show was going but it seemed to all come together in that last couple minutes, and so I think in terms of where we're going strategically, you'll have to just wait and see where it all comes together," Ergen said.

"It's a little hard to explain it this early in the show so to speak, and then for you skeptics out there, of course Seinfeld was a show about nothing so it could be a strategy about nothing if you're skeptical, but I think that everything we do has a purpose and we feel like it ultimately fits together," Ergen continued.

There has been speculation that Dish will use the Blockbuster brand to create a subscription service to rival Netflix ( NFLX). But that might not be the case.

Ergen said that he believes there is still a business in physical DVDs.

"I don't see Blockbuster necessarily being a competitor to Netflix directly in terms of streaming because Netflix has a formidable lead and probably insurmountable lead in that business," he said. "On the other hand for studios it may not be the best economic model ... and I think Blockbuster can indirectly provide competition out there by presenting a better financial model to where the studios want to go. If I owned a studio and I wanted to maximize my profit, Blockbuster would be an important element in that I think."

Dish made the winning bid of $320 million got Blockbuster last month.

-- Reported by Jeanine Poggi in New York.

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