DISH (DISH) Scraps Plans to Convert Blockbuster LLC into Neflix (NFLX) Competitor
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DISH Networks (Nasdaq: DISH) shares are ticking modestly higher following reports that CEO Charlie Ergen is scrapping plans for transforming Blockbuster into a Netflix (Nasdaq: NFLX) competitor.
Bloomberg notes that DISH planned to convert Blockbuster stores to sell mobile devices which would allow subs to stream DISH content wirelessly. However, federal regulators failing to approve a waiver to use spectrum for data and voice transmission cause plans to break down.
For the most part, DISH is going to close down unprofitable locations, though some stores in rural locations will remain open.
DISH acquired Blockbuster for about $320 million in 2011. Shares of DISH are up 1.2 percent on the session, while Netflix is up 6.6 percent today.
Bloomberg notes that DISH planned to convert Blockbuster stores to sell mobile devices which would allow subs to stream DISH content wirelessly. However, federal regulators failing to approve a waiver to use spectrum for data and voice transmission cause plans to break down.
For the most part, DISH is going to close down unprofitable locations, though some stores in rural locations will remain open.
DISH acquired Blockbuster for about $320 million in 2011. Shares of DISH are up 1.2 percent on the session, while Netflix is up 6.6 percent today.
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