Yep, the results of Blockbuster‘s sale auction have been tallied, and the victor is DISH Network. DISH’s purchase is valued at $320 million, which Blockbuster chairman and CEO Jim Keyes said was the “highest possible value” for stakeholders. But what does it mean for consumers?
Well, it could go any direction, but the good news for customers who have those little blue membership cards in their wallets is that DISH is an entertainment company and so is likely to try to leverage Blockbuster’s assets instead of closing it down.
Indeed, here’s a quote from DISH’s press release about the acquisition: “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,” said Tom Cullen, executive VP of sales, marketing and programming for DISH Network. “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.”
The purchase also will no doubt give DISH more clout when making deals with the studios. Instead of just negotiating deals for satellite, it’ll be negotiating for store rental and sales, kiosk and online video-on-demand. And Blockbuster’s video-on-demand online store could be joined with DISH’s satellite service, giving subscribers more value — and competing with Netflix’s subscription service. Or if DISH keeps Blockbuster’s online store separate, it gives DISH an additional pay-per-view revenue source.
MediaBeat proposes that DISH is mostly after Blockbuster’s online video streaming, disc-by-mail rentals and kiosks, and suggests that DISH could offer DVD and Blu-ray rentals for free as added value for its subscribers. Maybe.
It’ll be interesting to see what happens to Big Blue over the next year. We’ll be watching.
Are you a Blockbuster customer? How do you think DISH’s purchase will change things?
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