Dish Wins Blockbuster in Bid

By Michelle Amodio April 06, 2011

The once-popular movie rental chain Blockbuster just went bye-bye in an auction and is now in the hands of Dish Network.

After mismanagement, unsuccessfully competing with online movie rental companies like Netflix and eventually filing for bankruptcy, Blockbuster was sold to the satellite TV chain at a price of $320 million.

The Wall Street Journal reported that Dish’s offer exceeded bids from a group led by the New York investor Carl Icahn and from a hedge-fund group led Monarch Alternative Capital of New York.

Dish looks at this as a way to expand by cross-marketing its satellite TV services with Blockbuster’s video offerings.

“While Blockbuster’s business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster’s brand as a leader in video entertainment,” said Tom Cullen, head of sales, marketing and programming for Dish.

This deal begs the questions, now that Dish has purchased Blockbuster, does it plan to take on Netflix in an online streaming competition? Is this just one move that has Dish flexing its muscle in the competition’s face?

Dish already has a leg up in TV offerings, as its services are cheaper than major cable players like Comcast and DirecTV. Customers may find that Dish is even more enticing now that it can offer something more than its standard HD and network services.

Netflix has 20 million viewers and their share of digital movie units, either downloaded or streamed, was put at 61 percent between January and February according to NPD. Coming in at number two was Comcast at 8 percent, with a three-way tie for third at 4 percent among DirecTV, Time Warner Cable, and Apple. Those are some pretty hefty numbers to contend with should Dish try to make its foray into the digital streaming video market.

Blockbuster used to dominate the U.S. movie rental business; however it lost significant amounts of money for years as that business declined because customers shifted to Netflix, video on demand and DVD rental kiosks.

Dish hopes to close the deal sometime during the second quarter pending approval of the bankruptcy court.


Michelle Amodio is a TechZone360 contributor. She has helped promote companies and groups in all industries, from technology to banking to professional roller derby. She holds a bachelor's degree in Writing from Endicott College and currently works in marketing, journalism, and public relations as a freelancer.

Edited by Janice McDuffee

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Four Reasons to Reach for the Cloud after World Earth Day

By: Special Guest    4/23/2018

The World Earth Day agenda offers a chance to flip the rationale for cloud adoption and highlight environmental benefits that the technology brings pr…

Read More

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More