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DISH Network Considers Hollywood Studio Feedback on Blockbuster Store Existence

by Andrew

Posted on May 3, 2011

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.