Dish continues to diversify its business by updating its technology and providing new services other than their cables business. Obviously, Blockbuster also needs to make a shift to stay profitable amid struggles in the entertainment industry.
Dish’s owner Charlie Ergen recently launched Blockbuster Mobile, which main business is to sell various smartphones online. Blockbuster Mobile works with carriers Verizon, T-Mobile, and Sprint. It also offers devices such as Samsung’s Galaxy S3.
Insiders believe Dish is planning to bring its online retail business to its Blockbuster stores soon. Dish bought Blockbuster Inc. in a bankruptcy auction in New York last year after agreeing to buy the home video and video game rental service provide for $320 million and cover $87 million in liabilities.
Dish previously promised to keep 1,500 Blockbuster and 15,000 employees across the United States, but the struggling movie and console game industry heavily hit hundreds of its stores and eventually forced Dish to lessen it to 850 locations. According to Bloomberg, Dish could soon be selling not only phones but its mobile services offering as soon as they get permission from Federal Communications Commission.
“Wireless will complement all of our technologies and allow us to be in more places and offer more of our services on one bill,” Dish chairman and co-founder Charlie Ergen told Bloomberg in October, according to CNET.com.
Dish is having a hard time hammering a deal with FCC to start its mobile service business due to objections from Sprint Nextel, which is demanding FCC to restrict Dish’s spectrum that would protect the H Block. The FCC is making sure it gets much money from selling that the H Block in a spectrum auction.