Light Reading

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        ADD A COMMENT
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
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Choosing a Technology Supplier? Consider Changing Your Selection Criteria
Steve Saunders, CEO and founder, Light Reading, 5/18/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Smarter 'Dumb' TVs Will Drive OTT Adoption
Mari Silbey, Senior Editor, Cable/Video, 5/18/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones