Wow what a story. First off Wayne Huzienga of Florida Marlins fame and company take Blockbuster Video (Wow what a difference) to new heights and expansion in the 90’s. All of your favorite mom and pop video shops closed down for the big blue giant. Then Silicon Valley sweeps Blockbuster under the rug, and they get bailed out by Dish Network. Bliss..
Today it was announced that Dish Network will acquire Blockbuster for about $228 million in cash and other stock options in a deal worth $320 million. Dish will get Blockbuster’s 1700 stores, customer lists, brand and most importantly, internet streaming rights.
Todd Mitchell, an analyst with Kaufman brothers predicts that Dish Network is about to do something significant in the streaming space.
As part of an acquisition, DISH would presumably get Blockbuster’s Internet streaming rights, the Blockbuster brand and its customer lists. Combined with a build-out of the wireless spectrum it has acquired and technology from EchoStar and Hughes, we believe DISH could launch an on demand movie service that would 1) significantly enhance the competitive offering of the DISH Network, and 2) compete on a standalone basis with Netflix and other over-the-top video services.
Other sites have speculated that in addition to the internet streaming rights Dish Network will be able to offer their services at Blockbuster locations which are more appealing than the dealer network stores that are out there now.
By integrating the assets of the two companies Dish and Blockbuster could cause a major disruption to Net Flix’ plans to dominate in 2011. The Blockbuster app comes preloaded on multiple Android handsets.