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
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (4) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.