DISH Network Considers Hollywood Studio Feedback on Blockbuster Store Existence

DISH Network’s recent aquisition of Blockbuster left the satellite TV provider with over 1,700 Blockbuster retail locations and a big decision as to how the store fronts would tie in to DISH Network’s business model. DISH Network has solicited the advice and feedback of Hollywood movie studios to see if they “continue to believe in the traditional brick-and-mortar business model.” DISH Network has less than 90 days according to court orders to decide the fate of the Blockbuster rental stores as recently appointed Blockbuster LLC CEO, Michael Kelly weighs the options of maintaining the retail outlets. In a conference call earlier this week between Kelly and DISH Network CEO, Charlie Ergen, as reported by Home Media Magazine online, the executives at large are seriously contemplating the opinions of movie studios since they’re still “not sure” what exactly they will end up doing with the stores.

Ergen’s recently bold moves in the digital media and content streaming market with aquisitions of both Blockbuster LLC and DBSD North America Inc, a wireless Internet provider, have competitors and even directly-related industries like the movie studios keeping a close watch as to what DISH will do next. Ergen spoke with Kelly about DISH Network’s current dilemma to be resolved in under 90 days: “For studios it may not be the best economic model […] and I think Blockbuster can indirectly provide competition out there by presenting a better financial model to where the studios want to go. If I owned a studio and I wanted to maximize my profit, Blockbuster would be an important element in that, I think.”

Stay tuned on the DISH TV Blog for further updates on DISH Network and Blockbuster LLC. For additional information on DISH Network deals and news visit authorized retailer DISH Systems online or call 866-989-3474.

1 Comment

  • Richard says:

    A problem I’ve always had with movie rental stores when I used to use them were their lack of selection. Too many times can I remember never finding that one movie I was looking for. The other frustration being popular movies all rented out. It will be interesting to see what the studios bring to the table. It’s a good idea that Dish is asking for their opinion since the existing business model is behind the times when Netflix, Hulu, Vudu, and others are ahead of the pack in terms of insant video on demand. A reinvention of the Blockbuster brand and something truly unique could help set them apart, but I’m wondering what that could be? What is more enticing than the convenience of at-home availability of movie rentals? On the side of brick-and-mortar stores is the fact that there are far more video content on physical formats than there are on instant viewing services and I imagine that won’t change very significantly. DVDs, especially Blu-rays, are still somewhat unique to the physical media format since they feature supplementary content that are not available on instant viewings. As much as I love watching films from the Criterion Collection instantly over Netflix, it doesn’t hold a candle to not just the visual quality, but also the amount of additional content available on the supplementary discs with their rich documentaries, interviews, and other insights about the film.

    Bookstore chains such a Borders and Barnes and Nobles have reading events. Maybe Blockbuster can do well to engage consumers on a content level–something socially engaging that can cater to viewers across all levels of interests that studios could get behind?

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