# DISH Network Agrees to Acquire Blockbuster Assets



## klang (Oct 14, 2003)

Article in today's Wall Street Journal says Dish has put in a bid for Blockbuster. Doesn't seem like a good fit to me unless they are just after the name.


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## Nick (Apr 23, 2002)

Charlie wants to pick off BB's nascent streaming service. IPTV is a fast-growing segment of entertainment delivery for all major content providers.


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## Paul Secic (Dec 16, 2003)

klang said:


> Article in today's Wall Street Journal says Dish has put in a bid for Blockbuster. Doesn't seem like a good fit to me unless they are just after the name.


I don't see how it fits into Dish's agenda either, time will tell I guess.


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## Nick (Apr 23, 2002)

Paul Secic said:


> I don't see how it fits into Dish's agenda either, time will tell I guess.


Paul, re-read the WSJ article and post #2.


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## klang (Oct 14, 2003)

> In looking at Blockbuster, Dish believes the chain's brand could be valuable for its video-on-demand services, one of the people said. Blockbuster currently offers on-demand service for certain Blu-ray players, computers and handheld devices, among other things.
> 
> Dish also sees an opportunity to sell subscriptions through Blockbuster's stores and believes a tie-up could give it certain benefits in negotiating transactions with movie studios, this person said.


The story doesn't say who 'this person' is. No way to know if they actually know what Dish is up to.

I think being stuck with about 3000 actual brick and mortar stores doesn't really fit.


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## Nick (Apr 23, 2002)

klang said:


> ...think being stuck with about 3000 actual brick and mortar stores doesn't really fit.


Charlie is not interested in the B&Ms, but every BB I've seen I would consider to be prime commercial real estate with a considerable aggregate market value. I'm betting on Mr. Ergen coming out on top if he is, in fact, the successful bidder.


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## inkahauts (Nov 13, 2006)

Nick said:


> Charlie is not interested in the B&Ms, but every BB I've seen I would consider to be prime commercial real estate with a considerable aggregate market value. I'm betting on Mr. Ergen coming out on top if he is, in fact, the successful bidder.


Assuming he can sub lease the sites for a hi value. I would think it'd be very hard to sub lease things at a profit when many where probably locked in at higher rates than todays real estate values.. But who knows...


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## Nick (Apr 23, 2002)

inkahauts said:


> Assuming he can sub lease the sites for a hi value. I would think it'd be very hard to sub lease things at a profit when many where probably locked in at higher rates than todays real estate values.. But who knows...


Again, this is all about BBs streaming service to augment the sat biz, not so interested in the BB locations.


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## RasputinAXP (Jan 23, 2008)

most of the BB locations are rented and most of those are already liquidating.


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## phrelin (Jan 18, 2007)

According to Businessweek this morning:


> After bankruptcy, Blockbuster rejected about 220 leases for stores previously closing and is now rejecting another 185.
> 
> Dallas-based Blockbuster began reorganization in September with 5,600 stores, including 3,300 in the U.S. and the remainder abroad. Among the U.S. stores, 3,000 were owned. The rest are franchised. About 200 stores closed before bankruptcy.
> 
> The petition listed assets of $1.017 billion against debt of $1.465 billion. Blockbuster estimated it owes $57 million in accounts payable in addition to secured and subordinated notes.


Regarding Charlie's interest, another WSJ article headlined Blockbuster Bankruptcy: Why Does DISH Want In? offers two "analysts'" explanations:


> [Mike] Spector is reporting that Ergen has notions that the Blockbuster brand could give a leg up to Dish's video-on-demand service, and he sees a chance to use Blockbuster stores to sell subscriptions for Dish television service. Thin gruel rationale, yes, but a bite at Blockbuster is a pretty cheap risk. The starting bid to take over Blockbuster is less than $300 million....
> 
> Wells Fargo analyst Marci Ryvicker said she believes Blockbuster could give Dish the entertainment programming for...services like Netflix that funnel movies or TV shows through the Internet. "We had often thought that Charlie Ergen is interested in providing an over-the-top product but the one piece we were missing was how to get content-Blockbuster may be the (first) answer," Ryvicker wrote.


I don't know how good the inventory is. Even the article notes:"Why, for example, are there 96 copies of _No Strings Attached_ and zero copies of _Black Swan_?" But Blockbuster must have contractual arrangements with studios for streaming rights, arrangements that might be difficult for Charlie to negotiate from scratch today.


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## Stuart Sweet (Jun 19, 2006)

Maybe there is intellectual property that Dish wants. It certainly can't be the stores.


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## klang (Oct 14, 2003)

No idea how this stuff works, Can they bid on just pieces of Blockbuster? Can't imagine why anyone would want the 3000 stores in this market. Some predict the Commercial Real Estate market is the next bubble to burst.


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## HobbyTalk (Jul 14, 2007)

I would think that BB owns but a handful of properties. Most of their stores are located in malls and shopping centers that is leased property. The bankruptcy will wipe out most of the debt and would most likely break any leases.

One example I look at is Eddie Lampert buying Kmart when it was in bankruptcy and when it came out he used the excess cash Kmart had to leverage a buyout of Sears.


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## trdrjeff (Dec 3, 2007)

(Story Developing)


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## Hoosier205 (Sep 3, 2007)

trdrjeff said:


> (Story Developing)





> The auction started with Dish's bid, of $284 million, which would give $142.6 million to lenders who rolled up their debt to give Blockbuster a loan in bankruptcy, and cover $39.9 million in liabilities.
> 
> Read more: http://www.sfgate.com/cgi-bin/artic...-7A8D8CQV10TFKTET9RRUIMKV53.DTL#ixzz1IfPuvwv3


Good lord...Charlie sure does like to spend the money.


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## scooper (Apr 22, 2002)

Charlie will spend money when he deems it desirable to.

I believe that Dish has more satellites than Direct (both active and inactive).


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## Hoosier205 (Sep 3, 2007)

scooper said:


> Charlie will spend money when he deems it desirable to.


One failing company purchasing another. A wise investment.


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## James Long (Apr 17, 2003)

Hoosier205 said:


> One failing company purchasing another. A wise investment.


Failing? DISH remains profitable.


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## Richard King (Mar 25, 2002)

Hoosier205 said:


> One failing company purchasing another. A wise investment.


I only WISH that I could "fail" as well.


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## James Long (Apr 17, 2003)

*DISH Network Agrees to Acquire Blockbuster Assets*

ENGLEWOOD, Colo., April 6, 2011 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) announced that it was selected as the winning bidder in the bankruptcy court auction for substantially all of the assets of Blockbuster, Inc. DISH Network's winning bid was valued at approximately $320 million. After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in the second quarter of 2011.

"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 vice president 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."

Completion of the transaction is contingent upon satisfaction of certain conditions, including bankruptcy court approval.

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995:

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network Corporation's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements.

About DISH Network

DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides more than 14.1 million satellite TV customers, as of Dec. 31, 2010, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life. Subscribers enjoy industry-leading customer satisfaction, the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.

SOURCE DISH Network Corporation


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## SamC (Jan 20, 2003)

Odd.

First, this is not a real estate deal. Blockbuster does not own 99.9% of its stores. Under bankruptcy, DISH can either affirm or break any lease it wants. In any event, it has to start paying rent again on all of these places if it keeps them. And do what with them? Rent videos? Umm, that is where this story started. Sell dishes? Sell dishes from storefronts in strip malls in the suburbs? What an original idea. If you remember the K-Mart / Sears deal, it WAS a real estate deal. Both chains owned a very large number of big boxes.

Second, it gets the "intelectual property". Esntually the name "Blockbuster". DirecTV had a deal to label its PPV as "Blockbuster" for a year or so. I did not notice any change in its offerings or its rental rates. Somebody is going to be more likely to rent a video because its called "Blockbuster" and not "DISH"?

Third, it gets this internet business. OK. Different from Netflix exactly how? To me this just reinforces the ONLY advantage cable has over DBS, which is internet bundling. DISH does not even have faux-bundling deals with any phone companies except Frontier. And the "vending machine" business. At gas stations. Hard to put dishes in vending machines.

Lastly, it gets lots of data. People that rent a lot of videos? Maybe because their cable sucks? What an original idea.

Oh, and it gets lots of franchisees, who have no interest in selling dishes, and lots of operations outside the USA, where it cannot dell dishes.

I do not see the math. My bet is that DISH takes the intelectual property and the internet business, sub-liscenses the vending machines, and resells the rest to a liquidator. The B&M video rental store is just not a viable business today. The B&M DBS store never was.


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## WestDC (Feb 9, 2008)

Spend money to make money-The one thing that it gives dish upfront is a NAME that is recognized "Brand Name" familiar with an already customer base in place, might be a good thing for them, If you don’t take a risk ,you can’t make a gain.


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## olguy (Jan 9, 2006)

SamC said:


> Third, it gets this internet business. OK. Different from Netflix exactly how? To me this just reinforces the ONLY advantage cable has over DBS, which is internet bundling. DISH does not even have faux-bundling deals with any phone companies except Frontier.


Netflix is all you can eat for 1 price. Blockbuster, like Dish is pay per view. For folks that watch 2 or 3 movies a week it's a big difference.

And the cable DVR I had for a 30 day trial will never make any bundle price worth it


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## gully_foyle (Jan 18, 2007)

There are synergies. The online service is something that has customers and technology in place and could continue even if the number of stores decreases markedly (something I'd expect, with mostly rural stores remaining if any).

Amazon bundled a Netflix Lite service in with their existing Amazon Prime. Why can't DISH add an online streaming service to its satellite offerings? Why is it such a loser idea?


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## Stuart Sweet (Jun 19, 2006)

I wish them all the best. Still, there must be much smarter people than I over there because I can't see what anyone would want with Blockbuster.


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## Justin23 (Jan 11, 2008)

WestDC said:


> Spend money to make money-The one thing that it gives dish upfront is a *NAME that is recognized "Brand Name"* familiar with an already customer base in place, might be a good thing for them, If you don't take a risk ,you can't make a gain.


Blockbuster is a dying brand name, IMO. 

The question I have is Blockbuster a _profitable/marketable_ brand name?


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## RAD (Aug 5, 2002)

gully_foyle said:


> There are synergies. The online service is something that has customers and technology in place and could continue even if the number of stores decreases markedly (something I'd expect, with mostly rural stores remaining if any).
> 
> Amazon bundled a Netflix Lite service in with their existing Amazon Prime. Why can't DISH add an online streaming service to its satellite offerings? Why is it such a loser idea?


But my question would by why would they need to buy Blockbuster in order to do this? Doesn't Dish already have an infrastructure in place to stream content with their DishOnline?


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## jacmyoung (Sep 9, 2006)

Stuart Sweet said:


> I wish them all the best. Still, there must be much smarter people than I over there because I can't see what anyone would want with Blockbuster.


You are not alone, most industry analysts or news media had no clue what Charlie is going after. Since no smart people know why, let me venture a guess for the sake of guessing, at the risk of being called a conspirator by some, Charlie's shopping spree, the Blockbuster deal being one of them, is in some way telling the world he can see value when he sees it, no matter how little it may make sense to the others, and he can pay big bucks if he wants to for such value.

He just doesn't want to pay TiVo


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## MysteryMan (May 17, 2010)

Justin23 said:


> Blockbuster is a dying brand name, IMO.
> 
> The question I have is Blockbuster a _profitable/marketable_ brand name?


Maybe they will change the name to "DISHbuster". Has a nice ring to it.


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## WestDC (Feb 9, 2008)

Justin23 said:


> Blockbuster is a dying brand name, IMO.
> 
> The question I have is Blockbuster a _profitable/marketable_ brand name?


May be dying to you and Me But not for others? I wouldn't have bought it even if I could have affored it.

He (Charile) May be buying it to off set profits so as NOT to PAY additional or any Goverment Taxes--Only the IRS knows for sure


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## klang (Oct 14, 2003)

RAD said:


> But my question would by why would they need to buy Blockbuster in order to do this? Doesn't Dish already have an infrastructure in place to stream content with their DishOnline?


That is what confuses me as well. Perhaps Blockbuster holds favorable contracts with some of the studios?


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## Newshawk (Sep 3, 2004)

MysteryMan said:


> Maybe they will change the name to "DISHbuster". Has a nice ring to it.


Not really. It sounds like a cable marketer's wet dream.


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## JosephB (Nov 14, 2005)

I think this is genius. Think about it:

1. 1,700 retail locations. Instantly DISH has payment centers, equipment drop-off and pick up centers, and sales showrooms. The local cable company has a few local places where you can stop in and see someone in person, now DISH can do that too. Even if they close a big chunk of them. Plus, SOME of them have to be making money. If they are all in the red, they would have closed them all instead of just some of them.

2. Relationships with movie companies. More importantly, now DISH represents PPV, streaming, and physical rentals (in all three sub-markets: mail, vending machines, and in full-on stores). This gives them incredible leverage with the studios.

3. It's a hedge against Netflix. Imagine that you now get Blockbuster streaming service with your America's Everything Package--including access through the website and any devices that support it. Now imagine integrating your Sling-enabled receivers into that same website. Plus, they can keep Blockbuster online available as a stand alone product and make a little money from the people that refuse to get cable/satellite. And, they can market DISH service to all those people.

4. The brand. It's still worth a LOT of money. Satellite/media nerds may think it's a dead brand, but at a very minimum I guarantee DISH Cinema will be rebranded to Blockbuster PPV/Cinema/whatever. I don't think it would be outside the realm of the possible that DISH rebrands the entire company and service to Blockbuster, but, that is a long shot.

The only thing left is a broadband/cell phone company. If I had to guess, I'd bet that he makes a bid for Clearwire and/or Sprint at some point. Combine those two with the spectrum he picked up earlier this year, and you have a full wireless company that can completely compete with any cable or phone company.


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## sigma1914 (Sep 5, 2006)

JosephB said:


> ...
> 3. It's a hedge against Netflix. Imagine that you now get Blockbuster streaming service with your America's Everything Package--including access through the website and any devices that support it. Now imagine integrating your Sling-enabled receivers into that same website. Plus, they can keep Blockbuster online available as a stand alone product and make a little money from the people that refuse to get cable/satellite. And, they can market DISH service to all those people.
> 
> ....


Have you used Blockbuster streaming? It's horrible and nothing like Netflix. The free titles are barely worth being free & everything else is PPV.


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## DodgerKing (Apr 28, 2008)

This makes no sense at all. Not only should he not have bought it, he probably shouldn't take it if someone payed him

Sent from my iPhone using DBSTalk


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## jacmyoung (Sep 9, 2006)

JosephB said:


> I think this is genius. Think about it:
> 
> 1. 1,700 retail locations. Instantly DISH has payment centers, equipment drop-off and pick up centers, and sales showrooms. The local cable company has a few local places where you can stop in and see someone in person, now DISH can do that too. Even if they close a big chunk of them. Plus, SOME of them have to be making money. If they are all in the red, they would have closed them all instead of just some of them.
> 
> ...


All your points have been analyzed by smart people, the math just did not add up.



> The only thing left is a broadband/cell phone company. If I had to guess, I'd bet that he makes a bid for Clearwire and/or Sprint at some point. Combine those two with the spectrum he picked up earlier this year, and you have a full wireless company that can completely compete with any cable or phone company.


That can definitely be on Charlie's mind, but we are talking billions not millions.

What about the 700mhz spectrum they own? Can it be used to deliver Blockbuster type of service nation wide?


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## JosephB (Nov 14, 2005)

sigma1914 said:


> Have you used Blockbuster streaming? It's horrible and nothing like Netflix. The free titles are barely worth being free & everything else is PPV.


Why would Charlie run it like Blockbuster run it? That strategy got them bankrupted. With his relationships with content, Charlie could beef it up and make it a competitor to Netflix. Hollywood wants to take Netflix down a peg or two already as it is.


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## Stuart Sweet (Jun 19, 2006)

JosephB said:


> I think this is genius. Think about it:


I respect your opinion but mine differs.



> 1. 1,700 retail locations. Instantly DISH has payment centers, equipment drop-off and pick up centers, and sales showrooms. The local cable company has a few local places where you can stop in and see someone in person, now DISH can do that too. Even if they close a big chunk of them. Plus, SOME of them have to be making money. If they are all in the red, they would have closed them all instead of just some of them.


I'm not sure why Dish would need brick-and-mortar locations unless they were planning to disenfranchise all their dealers.



> 2. Relationships with movie companies. More importantly, now DISH represents PPV, streaming, and physical rentals (in all three sub-markets: mail, vending machines, and in full-on stores). This gives them incredible leverage with the studios.


It is my opinion that the long-standing relationships of which you speak actually killed Blockbuster. Those relationships prevented them from being price-competitive on retail sales, limiting a potentially large source of walk-in traffic. Plus, according to sources who have worked there, Blockbuster was not paying much less for DVDs than you would if you went into Wal-Mart. With all that purchasing power, it makes sense that the reason was poorly written purchase contracts.



> 3. It's a hedge against Netflix. Imagine that you now get Blockbuster streaming service with your America's Everything Package--including access through the website and any devices that support it. Now imagine integrating your Sling-enabled receivers into that same website. Plus, they can keep Blockbuster online available as a stand alone product and make a little money from the people that refuse to get cable/satellite. And, they can market DISH service to all those people.


Here I would agree except that Blockbuster's services have been unsuccessful against Netflix. In popular perception, they are a failure. One would be better off with no reputation than a bad reputation. 


> 4. The brand. It's still worth a LOT of money. Satellite/media nerds may think it's a dead brand, but at a very minimum I guarantee DISH Cinema will be rebranded to Blockbuster PPV/Cinema/whatever. I don't think it would be outside the realm of the possible that DISH rebrands the entire company and service to Blockbuster, but, that is a long shot.


Here I think you actually have a point. As we move into an IPTV-dominated future, the name "dish" actually may hold the company back. Rebranding now may make sense.



> The only thing left is a broadband/cell phone company. If I had to guess, I'd bet that he makes a bid for Clearwire and/or Sprint at some point. Combine those two with the spectrum he picked up earlier this year, and you have a full wireless company that can completely compete with any cable or phone company.


The strategy of aggregating failing companies hasn't worked well in the past. At one point, Corel sought to build an empire based on competitors to Adobe and Microsoft. They bought WordPerfect, Novell, Xara, Paint Shop Pro, Borland... all strong companies at one point with formerly-flagship products. The strategy didn't work. A large pile of poo is still poo.


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## sigma1914 (Sep 5, 2006)

JosephB said:


> Why would Charlie run it like Blockbuster run it? That strategy got them bankrupted. With his relationships with content, Charlie could beef it up and make it a competitor to Netflix. Hollywood wants to take Netflix down a peg or two already as it is.


What relationship? He'll have to spend A LOT more money to get the rights to content on par with Netflix.


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## DodgerKing (Apr 28, 2008)

Stuart Sweet said:


> Here I think you actually have a point. As we move into an IPTV-dominated future, the name "dish" actually may hold the company back. Rebranding now may make sense.


That is an awful lot of money to spend on just name rights


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## Justin23 (Jan 11, 2008)

Stuart Sweet said:


> Here I think you actually have a point. As we move into an IPTV-dominated future, the name "dish" actually may hold the company back. Rebranding now may make sense.


If you notice D*'s new logo, the "satellite television" branding is missing


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## Stuart Sweet (Jun 19, 2006)

> That is an awful lot of money to spend on just name rights


It is indeed. Imagine if they'd bought a name with a good reputation :lol:


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## phrelin (Jan 18, 2007)

> After certain adjustments are made at closing of the transaction, including adjustments for available cash and inventory, DISH Network expects to pay approximately $228 million in cash to acquire Blockbuster at the closing which is expected to occur in the second quarter of 2011.


For Charlie $228 million is chump change.

I'm not exactly sure what he gets for it, but my thought is that in the grand vision it relates in some way to Press Release-DISH Network Partners with EPIX to Bolster Library of Online Movies.

When one looks at the wider view, the future of retail "TV" appears to be in "on demand" movies and series from your "device."

Remember that on cable TV, "Spongebob" gets an average rating of about 4,000,000 viewers per time slot which on an annual basis represents 1.4± billion discrete viewings, plus additional on-line viewings and games. This will translate well to "devices."

So far, the NFL has not demonstrated the ability to draw as effectively in the small screen market. (Remember, people buy bigger screens to watch games - they don't want to watch them on their wristwatch.)

In the category of "live programming," news is available to everyone on line and live series competition/game shows (i.e. DWTS and AI) are available through traditional TV channels. Regardless of what web streaming Fox or ABC allow via the internet to Xfinity subscribers, you can stream this week's AI to your Driod phone or iPad through your Slingbox no matter who you get your TV service from.

Sports events are becoming the "Evian water" of TV. Soon the average American household will have to choose between "just drinking tap water or giving up Christmas gifts" as teams and leagues price the TV "seat" as a plebian version of a $2,000 per event box. Charlie is choosing not to burden his subscribers with those costs. Regardless of what web streaming the NFL or NHL allow via the internet to Xfinity subscribers, you can stream today's game to your Droid phone or iPad through your Slingbox no matter who you choose other than Dish to get your TV service from.

Charlie clearly sees $228 million in assets in Blockbuster, whether it's titles or streaming rights or whatever. Storefronts I'm unsure of, but within some urban areas he would have the potential of marketing Slingbox equipment as well as Dish service, particularly if he can do something with the terrestrial bandwidth he's acquiring in other deals.


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## TBoneit (Jul 27, 2006)

"The purchase of Blockbuster is an important strategic shift for Dish. It means the company is flexing its muscle in an attempt to become a major player.

But more importantly for consumers, it may mean more viewing options and competitive pricing for consumers. Blockbuster's online content library could give Dish Network an opportunity to create an online product to supplement the viewing experience akin to Netflix's offering mail-order DVDs alongside streaming content.

That's just speculation, but it would align with the overall goal of Dish Network to provide a top-notch experience even as it is seen as a low-cost option. In recent years, the network has expanded HD offerings, on-demand movies and channel selection to make quality a bigger part of the equation."

The rest is at the link below

http://money.msn.com/top-stocks/pos...e57f-4a67-93ea-004533b6774c&_nwpt=1&GT1=33002


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## Stewart Vernon (Jan 7, 2005)

A couple of other thoughts...

Dish would get access to Blockbuster's customer database... and possibly be able to upsell Dish Network service to a bunch of new customers.

Dish could also improve the Blockbuster streaming service and offer it for free or at a reduced rate to Dish Network customers as a hedge against people who might want to drop satellite in favor of streaming only.

Dish could also possibly be planning to have an expanded streaming option... What if they could get programming providers to allow them to stream current programming via Blockbuster streaming service?

Time Warner introduced a streaming app to let their customers stream liveTV of some channels to their customers.

What if Dish could do this via the Blockbuster purchase?

Just thinking out loud...


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## yensid (Aug 12, 2006)

This deal is a waste of time. DISH just blew hundreds of millions of dollars. Some people don't even know who BB is anymore. Not good.


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## RAD (Aug 5, 2002)

Stewart Vernon said:


> Time Warner introduced a streaming app to let their customers stream liveTV of some channels to their customers.


That app only works on a WiFi connection within the customers home.


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## adunkle (Aug 19, 2006)

I think you hit the nail on the head Stuart. I wonder if somebody is calling Charile right now and saying "If you read DBSTalk.com like the rest of us, you could have saved 228 million!"


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## photostudent (Nov 8, 2007)

Streaming is the future. The Blockbuster name might give them a distinct brand recognition to compete in that arena. I've been with Direct for 15 years and am not sure what they call their streaming service. Maybe it's just "On Demand"? I'm not sure, I use Netflix. Still I think Dish could have done some "branding" for a lot less money.


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## PhilS (Sep 23, 2007)

Maybe there is hidden value in Blockbuster's patents for content delivery over the Internet.


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## brant (Jul 6, 2008)

JosephB said:


> I think this is genius. Think about it:
> 
> 1. 1,700 retail locations. Instantly DISH has payment centers, equipment drop-off and pick up centers, and sales showrooms. The local cable company has a few local places where you can stop in and see someone in person, now DISH can do that too. . .


Dish already has small offices all over the country that are full of equipment (installation services). You may have seen one and not noticed it because they don't put a big sign out front, and the doors stay locked.

If they wanted to do this, it would've already happened.


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## scottchez (Feb 4, 2003)

Proposed Netflix Model for Dish (how they can be just like netflix today)
======================
I propose they do this.

The new Dish Block Buster offers a $9.95 UNLIMITED movie package.

The way it works is they use the SATS to download the movie to your DVR HD from your Que over the next 1-2 days just like it takes Netflix 1-2 days to deliver the DVD or Blue Ray to your house.
You then watch the movie and keep it as long as you want. When done, you return it which in turns deletes it from your HD. Dish then says it takes 1 day for them to get the notice that you deleted the move (simulates the Netflix return the DVD in the mail).

Dish then sends the next movie in your QUE in 1-2 days

Dish also offers STREAMING movies like netflix does today using a combined improved HD block buster stream system

The new Dish Block Buster can offer higher prices packages for more movies rented at time just like Netfix.
In the end this would be a lower cost model for Dish as they already have the SAT and PPV space (they would remove all PPV channels so they could use them to download rentals) dish would not have to buy physical DVDs or pay people to sort and mail em. They dont have to pay US mail postage.

What do you guys think?


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## jacmyoung (Sep 9, 2006)

"PhilS" said:


> Maybe there is hidden value in Blockbuster's patents for content delivery over the Internet.


What patents does Blockbuster hold?

In 2006 Netflix sued Blockbuster for infringement of its online DVD rental patents, Blockbuster countersued Netflix arguing the patents were unenforceable. In 2007 the two settled but they refused to disclose the settlement agreement to the presiding judge so the judge declined to oversee the settlement, rather simply dismissed the lawsuits.

Did Charlie see something in that agreement, secrets even the judge was not allowed to see?


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## phrelin (Jan 18, 2007)

scottchez said:


> What do you guys think?


The idea has possibilities. I think people have forgotten that satellite offers different options.

And Charlie is buying broadband spectrum which adds to possibilities. Consider the discussion in the threads Press Release - DISH To Purchase DBSD, Developer of U.S. HYBRID Communications System and AT&T to Buy DISH ?? and Ergen's two-way hybrid satellite/wireless infrastructure.

There's a lot of headscratching going on and negative speculation by analysts. But I don't think Charlie got up one day last month and decided he wanted a bunch of DVD's so he bought Blockbuster.

If nothing else, my guess is he has people in the home media delivery systems business both puzzled and a bit on edge. Unlike Netflix or Xfinity, he does have Echostar's hardware technology design engineering and manufacturing resources (including the Sling division focused on deliver to "devices").

IMHO only the foolish would dismiss the idea of Charlie paying out small change for the assets of Blockbuster.


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## jacmyoung (Sep 9, 2006)

"phrelin" said:


> The idea has possibilities. I think people have forgotten that satellite offers different options.
> 
> And Charlie is buying broadband spectrum which adds to possibilities. Consider the discussion in the threads Press Release - DISH To Purchase DBSD, Developer of U.S. HYBRID Communications System and AT&T to Buy DISH ?? and Ergen's two-way hybrid satellite/wireless infrastructure.
> 
> ...


I agree whatever Charlie is buying is only one piece of his puzzle, which was why I asked about those other purchases. Simply looking at one deal and dismiss it on its own merits can be foolish, on the other hand I would not entirely rule out the possibilty that he just woke up one day and decided to try something different by throwing darts at a giant board


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## Stewart Vernon (Jan 7, 2005)

RAD said:


> That app only works on a WiFi connection within the customers home.


Yeah... and it also only works if you have Time Warner RoadRunner internet...

but the point was it is a step towards allowing streaming live TV to mobile devices for cable customers.

If Dish were able to offer a similar service to their satellite customers it could be interesting.


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## ghiotom (Nov 27, 2008)

Doesn't Blockbuster have studio deals in place which allows them to have movies available before Netflix and Redbox? I thought it was something like 28 days later for Netflix and Redbox. Maybe there 's some value to that.


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## Araxen (Dec 18, 2005)

ghiotom said:


> Doesn't Blockbuster have studio deals in place which allows them to have movies available before Netflix and Redbox? I thought it was something like 28 days later for Netflix and Redbox. Maybe there 's some value to that.


Yes they do get them early because the studio's get a cut of the money they make from it.


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## jacmyoung (Sep 9, 2006)

"Araxen" said:


> Yes they do get them early because the studio's get a cut of the money they make from it.


DirecTV, like Blockbuster, gets the new releases 28 days ahead of Netflix and Redbox. But I doubt Charlie bought Blockbuster for this privilege. He would have dealt with the studios directly rather taken this path.


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## Stuart Sweet (Jun 19, 2006)

scottchez said:


> Proposed Netflix Model for Dish (how they can be just like netflix today)
> ======================
> I propose they do this.
> 
> ...


It's an interesting idea and quite possible. But it requires a real change in the way that contracts are negotiated. I believe DIRECTV tried to go in a direction similar to this. I have no information to share other than that... except to say that it clearly didn't work since it never happened.

It just seems to me that they could have done this without paying a quarter billion dollars for blockbuster, and probably would have been better off without blockbuster's antiquated contract model.


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## dbspr (May 17, 2008)

The new name will be ...
Blockbuster by DISH NETWORK, the video store experience.
Blockbuster by DISH NETWORK, The Streaming experience. (for the broadband segment).
will be continued in color blue and yellow.
in fact DISH should buy T-Mobile. and create the own DSL network.


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## rnbmusicfan (Jul 19, 2005)

I think Dish values the Blockbuster brand and its streaming, as another poster mentioned. The streaming model (pricing, etc.) that Blockbuster had, may have to be overhauled though. Possibly Dish may want to make Blockbuster On Demand a combined Netflix On Demand and Amazon VOD experience. I think operating that will be more challenging than Dish may think now, with Blockbuster as a small side business of Dish.

The store leases will likely all expire without being renewed, and probably Blockbuster Express will dissolve (or maybe that can be sold). Wawa stores have been adding Blockbuster kiosks. Any other major chains that have Blockbuster Express? In NJ, Wal-Mart, ShopRite, Walgreens, Wegmans and Acme have Redbox. A&P/Superfresh and Safeway carry another one (DVD Play or something), and Wawa has started with Blockbuster Express.

I'm not sure on the Blockbuster by Mail. I think Dish may want to keep that service. The mail service is still a crucial part of the Netflix model, as Netflix doesn't have streaming rights for most of the valued content, so I'm unsure how Dish could operate a decent movie service that is competitive to Netflix without it. Otherwise Dish is just a PPV service with streaming - and buying Blockbuster for just that doesn't make sense.

Dish could offer packages with basic satellite programming and 1 DVD by mail unlimited (starter package) with online streaming.

Netflix charges $9.99 for the 1 DVD/mail and streaming, so perhaps Dish could offer a $7 extra add-on to existing Dish subscribers, or $9 for non Dish subscribers, coming in $3-$1 under, against rival Netflix.

I also think if Dish wants to make use of the Blockbuster brand outside of just its own network, they will need Roku box owners or some other audience. Dish could buy TiVo or Roku, remove Netflix and Amazon, when able, and then make Blockbuster the provided streaming PPV/movie streaming service of the box. It's still a challenging proposition trying of having Blockbuster really integrating and providing synergy to the core business that Dish runs.


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## TBoneit (Jul 27, 2006)

Blockbuster streaming is already available on the latest Western Digital Media Player.


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## mdavej (Jan 31, 2007)

Blockbuster Express is a different animal and will continue growing by leaps and bounds, at least in the short term. They also aren't limited by the same new release delays as Redbox and Netfilx since they've agreed to rent those out at higher prices. Although Redbox is still the market leader, they've been very aggressive. In my part of the country alone, they got a major grocery chain to rip out 500 DVDXpress kiosk and put in Blockbuster ones. 

NCR owns Blockbuster Express and just licenses the name. So Charlie got no piece of that other than continuing to collect the licensing fee. They have 9000 kiosks today and plan to add another 3000 this year at gas stations and grocery stores (still a long way to go to match Rebox's 25000 kiosks). They also plan to roll out retail machines that sell DVDs for $12.99 and blu-rays for $16.99.


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## James Long (Apr 17, 2003)

mdavej said:


> They have 9000 kiosks today and plan to add another 3000 this year at gas stations and grocery stores (still a long way to go to match Rebox's 25000 kiosks).


There are only five Redbox machines within two miles of my house (four 24x7 outdoor machines) and 50 within 50 miles. Only one Blockbuster in town ... a kiosk 5 miles away. Some day I'll have to rent a movie at one of them.

I'm not sure how Blockbuster fits in to Charlie's master plan ... or even if there is a master plan. There must be some potential there or no one would have bid to buy the company.


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## Grampa67 (Mar 14, 2005)

With Dish's presence on the subscription side, it brings an opportunity for Blockbuster

Read more: Judge approves Dish Network's $320 million purchase of Blockbuster - The Denver Post http://www.denverpost.com/search/ci_17797974#ixzz1IxjgmlR9 
Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

http://www.denverpost.com/search/ci_17797974


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## Nick (Apr 23, 2002)

So, can any tell me when CO became the center of freakin' Universe? My POS so-called wireless "weather center" from Oregon Scientific won't pick up America's atomic tick-tock from the snowflake state worth a darn! I know there are a few high spots in CO, but c'mon! What ever happened to WWV anyway?

/rant

Now, back your regularly scheduled thread.


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## klang (Oct 14, 2003)

Nick said:


> So, can any tell me when CO became the center of freakin' Universe? My POS so-called wireless "weather center" from Oregon Scientific won't pick up America's atomic tick-tock from the snowflake state worth a darn! I know there are a few high spots in CO, but c'mon! What ever happened to WWV anyway?
> 
> /rant
> 
> Now, back your regularly scheduled thread.


Early start on the government shutdown?


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## James Long (Apr 17, 2003)

*DISH Network Statement on Antitrust Approval of Blockbuster Deal*

ENGLEWOOD, Colo., April 8, 2011 /PRNewswire/ -- DISH Network Corporation (NASDAQ: DISH) issued the following statement regarding the receipt, earlier today, of antitrust approval for its pending purchase of substantially all of the assets of Blockbuster, Inc.:

"We are pleased to report that earlier today U.S. antitrust authorities granted early termination of the waiting period under the Hart-Scott-Rodino Act in connection with our pending purchase of substantially all of the assets of Blockbuster, Inc.

We commend the Department of Justice and the Federal Trade Commission for their expeditious completion of the review process, and we anticipate closing the Blockbuster transaction on April 21, 2011."

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995:

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network Corporation's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements.

About DISH Network

DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides more than 14.1 million satellite TV customers, as of Dec. 31, 2010, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life. Subscribers enjoy industry-leading customer satisfaction, the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.

SOURCE DISH Network Corporation


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## James Long (Apr 17, 2003)

James Long said:


> ... we anticipate closing the Blockbuster transaction on April 21, 2011.


Wow ... that is fast.


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## HobbyTalk (Jul 14, 2007)

James Long said:


> Wow ... that is fast.


The creditors want their money


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## HobbyTalk (Jul 14, 2007)

Best quote of the whole deal:

The Wall Street Journal reports that the auction for video-store chain Blockbuster Inc. at times became like a "cage match," said one person who was there. Another likened it to a "lawyers' gang fight," worthy of the Jets and Sharks of "West Side Story."

http://online.wsj.com/article/SB10001424052748704630004576249213434195934.html


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## scooper (Apr 22, 2002)

HobbyTalk said:


> Best quote of the whole deal:
> 
> The Wall Street Journal reports that the auction for video-store chain Blockbuster Inc. at times became like a "cage match," said one person who was there. Another likened it to a "lawyers' gang fight," worthy of the Jets and Sharks of "West Side Story."
> 
> http://online.wsj.com/article/SB10001424052748704630004576249213434195934.html


No wonder Charlie won, then  ....


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## juan ellitinez (Jan 31, 2003)

Maybe Charlie had couple extra 100 mil around burning a hole in his pocket because he did not reup the SNY contract


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## Grandude (Oct 21, 2004)

Nick said:


> So, can any tell me when CO became the center of freakin' Universe? My POS so-called wireless "weather center" from Oregon Scientific won't pick up America's atomic tick-tock from the snowflake state worth a darn! I know there are a few high spots in CO, but c'mon! What ever happened to WWV anyway?


I have four atomic clocks and both pick up the atomic clock from CO, but one place in the house is very iffy. But I'm not as far away from CO as you are.
I wonder if it is a non-essential government money hole. Can't cost to much to leave it running though...............


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## James Long (Apr 17, 2003)

Grandude said:


> I have four atomic clocks and both pick up the atomic clock from CO, but one place in the house is very iffy. But I'm not as far away from CO as you are.
> I wonder if it is a non-essential government money hole. Can't cost to much to leave it running though...............


WWV Outages:
http://www.nist.gov/pml/div688/grp40/wwv-sta-outages.cfm

The signal should be there now. There was no government shut down last night.

And now back to Blockbuster?


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## jacmyoung (Sep 9, 2006)

"HobbyTalk" said:


> Best quote of the whole deal:
> 
> The Wall Street Journal reports that the auction for video-store chain Blockbuster Inc. at times became like a "cage match," said one person who was there. Another likened it to a "lawyers' gang fight," worthy of the Jets and Sharks of "West Side Story."
> 
> http://online.wsj.com/article/SB10001424052748704630004576249213434195934.html


Thanks for the link. Souded to me DISH had the winning bid from early on, others just *****ed why theirs, even after being enhanced, did not match.

Now speculation time, since no one actually had provided a coherent projection as why Charlie wanted Bloackbuster, let me throw out my theory while my blood alcohol level is high. I think it is a part of his bigger plan, that may be to pave the way for other acquisitions, one of which could be TiVo, provided of course that he wins the court case.

I did say my blood alcohol level is high.


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## Jhon69 (Mar 28, 2006)

adunkle said:


> I think you hit the nail on the head Stuart. I wonder if somebody is calling Charile right now and saying "If you read DBSTalk.com like the rest of us, you could have saved 228 million!"


Nah! But I do sometimes email him and tell him to be careful where he spends his pocket change.


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## Jhon69 (Mar 28, 2006)

Stuart Sweet said:


> I wish them all the best. Still, there must be much smarter people than I over there because I can't see what anyone would want with Blockbuster.


Don't know.What does Dish Network want with a black satellite dish?.Don't know but they got them.

http://cgi.ebay.com/ws/eBayISAPI.dl...s=63&clkid=8229233575900257534&category=29783


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## HobbyTalk (Jul 14, 2007)

It gets signals from the black helicopters to beam commands through your TV so they can control you thoughts and actions.


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## Jhon69 (Mar 28, 2006)

HobbyTalk said:


> It gets signals from the black helicopters to beam commands through your TV so they can control you thoughts and actions.


Yes Master.:grin:


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## rnbmusicfan (Jul 19, 2005)

jacmyoung said:


> Thanks for the link. Souded to me DISH had the winning bid from early on, others just *****ed why theirs, even after being enhanced, did not match.
> 
> Now speculation time, since no one actually had provided a coherent projection as why Charlie wanted Bloackbuster, let me throw out my theory while my blood alcohol level is high. I think it is a part of his bigger plan, that may be to pave the way for other acquisitions, one of which could be TiVo, provided of course that he wins the court case.
> 
> I did say my blood alcohol level is high.


The closest thing I can think of would be Dish selling the equivalent of the CM-7000PAL DVR with OTA only support, combined with the equivalent of Roku, no cable card support, with or without satellite tuners instead, and with TiVo branding if TiVo is bought, and Blockbuster On Demand serving as a PPV and instant streaming source for movies.

the box could be leased to customers or sold with contracts like expensive smart phones, and the customer just pays a monthly fee.

Blockbuster Express DVD kiosks stay as NCR would be operating that business, and Dish would continue to get a licensing fee using the Blockbuster brand, but no other relation to the Dish service.

Everything else Blockbuster (stores, DVD by mail) is ceased.

Dish PPV rebranded as Blockbuster PPV.

Eventually with cloud storage offerings becoming more ubiquitous, Echostar can manufacture boxes without big hard-drives and the size and cost of the units could go down, which could help the box become more prevalent in HH.


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