Light Reading
Charlie Ergen's $320 million bet on bankrupt retail chain also puts Dish in league with some big cable operators

Dish's Latest Buy Is a Blockbuster

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
4/6/2011
50%
50%

Charlie Ergen, a man known for his poker prowess, is making another big bet on home video entertainment.

This time, his Dish Network LLC (Nasdaq: DISH) has emerged as the winning bidder for bankrupt video rental firm Blockbuster Inc. Dish, a satellite TV giant with 14.1 million subs, beat out Carl Icahn and others in the court auction with a bid of about $320 million. (See Dish Bids for Blockbuster.)

After certain adjustments to be made at closing, including available cash and inventory, Dish expects to pay roughly $228 million in cash. The deal is expected to close in the second quarter of 2011.

Dish didn't outline its strategy for Blockbuster, but, at this point, does intend to take advantage of Blockbuster's brick-and-mortar retail presence and its Web-based rental and video distribution platform.

"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," Dish EVP of Sales, Marketing and Programming Tom Cullen said, in a statement.

Why this matters
The buy could give Dish a leg up at Blockbuster's retail locations and elbow out DirecTV Group Inc. (NYSE: DTV) and cable MSO rivals.

However, the deal does put Dish in league (at least temporarily) with some large cable operators. Last year, Comcast Corp. (Nasdaq: CMCSA, CMCSK) forged a deal to complement its video-on-demand (VoD) business with a by-mail product offered in tandem with Blockbuster. Before that, Blockbuster hooked up with Suddenlink Communications and Mediacom Communications Corp. under a deal that called for the MSOs to rebrand their VoD services under the Blockbuster name and to promote their services in local Blockbuster stores.

Beyond the cross-promotion potential at retail, the deal also will help Dish expand its presence on an array of TVs, Blu-ray players, TiVo Inc. (Nasdaq: TIVO) DVRs, PCs, game consoles and other Internet-connected consumer electronics devices that have integrated the Blockbuster On Demand service. In that area, Dish could offer a more financially sound competitor for Netflix Inc. (Nasdaq: NFLX) while giving its own satellite TV subscribers access to a sizable VoD library.

For more
For a glance at Blockbuster's recent history, including its connections to the cable industry, please check out:



— Jeff Baumgartner, Site Editor, Light Reading Cable



(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:08:33 PM
re: Dish's Latest Buy Is a Blockbuster


Some updates on cable's connections to Blockbuster :

<ul>
<li>Comcast's DVDsByMail promo with Blockbuster&nbsp;remains active, but&nbsp;still carries&nbsp;the "beta" label. </li>
<li class="MsoNormal" style="margin: 0in 0in 10pt; color: black; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in;">Mediacom's co-marketing deal with Blockbuster "really didn't get anywhere," a spokesman says, noting that the MSO did end up running some cross-channel spots and putting up some kiosks in a few Blockbuster stores, but that was the extent of it. </li>
<li class="MsoNormal" style="margin: 0in 0in 10pt; color: black; line-height: normal; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l0 level1 lfo1; tab-stops: list .5in;">Suddenlink, which was to start off with some co-branding in its West Virginia system, declined to comment. Late last year, the MSO said it intended to offer over-the-top services from Blockbuster with its new TiVo box "in the coming months." </li>
</ul>

&nbsp;JB

SteveDonohue
50%
50%
SteveDonohue,
User Rank: Light Beer
12/5/2012 | 5:08:30 PM
re: Dish's Latest Buy Is a Blockbuster


Imagine if Charlie Ergen bought or teamed up with Blockbuster back the 1980s. It would've been a nice place to sell C-band satelite dishes. If Dish Network had that retail presence before DirecTV debuted in 1994, the industry could look much different than it does today.&nbsp;


&nbsp;

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Like Us on Facebook
Twitter Feed