Dish (DISH) Gets Blockbuster, Looks to Bury Netflix (NFLX)
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So, Dish Network (Nasdaq: DISH) bought Blockbuster for $320.6 million. What's next?
How about trying to take down Netflix (Nasdaq: NFLX) a peg or two?
In a statement this morning, Dish Executive Vice President of Sales, Marketing and Programming, Tom Cullen, said that "with its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network."
Well, it doesn't spell it out, but Netflix may just have a new competitor to...actually compete with.
The Wall Street Journal also chimed in on the matter, saying that Dish would face significant challenges such as locking-down streaming rights, hashing out studio deals, and increasing infrastructure to meet the new demands.
Dish competing with Netflix isn't a new idea, and the sole purpose of the acquisition wasn't to enter a new segment for Dish. Where Dish may find a bonus is in marketing, and then retaining customers the might have added-on Netflix with a separate subscription.
In a recent interview Netflix CEO Reed Hastings commented to Business Insider that he doesn't see Netflix moving people to cut cable quite yet, but add it as a supplementary service, noting "most households with cable and satellite TV can afford to pay Netflix at $7.99 per month."
So, with Dish being able to market through multiple locations, with thousands of employees, great connections, and streaming service leading to potential customer retention...what is Netflix to do?
How about trying to take down Netflix (Nasdaq: NFLX) a peg or two?
In a statement this morning, Dish Executive Vice President of Sales, Marketing and Programming, Tom Cullen, said that "with its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network."
Well, it doesn't spell it out, but Netflix may just have a new competitor to...actually compete with.
The Wall Street Journal also chimed in on the matter, saying that Dish would face significant challenges such as locking-down streaming rights, hashing out studio deals, and increasing infrastructure to meet the new demands.
Dish competing with Netflix isn't a new idea, and the sole purpose of the acquisition wasn't to enter a new segment for Dish. Where Dish may find a bonus is in marketing, and then retaining customers the might have added-on Netflix with a separate subscription.
In a recent interview Netflix CEO Reed Hastings commented to Business Insider that he doesn't see Netflix moving people to cut cable quite yet, but add it as a supplementary service, noting "most households with cable and satellite TV can afford to pay Netflix at $7.99 per month."
So, with Dish being able to market through multiple locations, with thousands of employees, great connections, and streaming service leading to potential customer retention...what is Netflix to do?
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