But whether the No. 3 pay TV company can use Blockbuster’s brand, stores and streaming-video capabilities to create a service more relevant to today’s quickly evolving viewer habits remains to be seen.
But analysts are split about whether Dish will keep the stores themselves open.
He speculated that the company might just want Blockbuster’s movie-streaming service and was likely emboldened by the $290 million initial bid from debt holders that started the auction.
”[Dish] decided that rather than buying the streaming capability and the Blockbuster brand name from another party, it could bid for the entire company and offer the store inventory to another bidder at a later date,” he said.
“In order to get the most from the investment, Dish Network needs to keep the Blockbuster brand top of mind with consumers, and that means in kiosks in drug stores and physical store locations,” Wall Street Strategies analyst Brian Sozzi said.
The company, with 14.1 million subscribers, is facing a maturing pay-TV industry as more TV and movie watchers go online or subscribe to services like Hulu and Netflix.
In 2010 new Dish subscribers fell 2 percent, hurt by aggressive discounts by competitors as satellite TV companies compete for subscribers.
Dish offers an online service at Dishonline.com with 150,000 movies, TV shows, clips and trailers. It also offers video-on-demand and pay-per-view services. It could use Dallas-based Blockbuster’s streaming service to expand its online offerings.View Entire Story
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