MUMBAI: Dish Network has agreed to buy Blockbuster for $228 million in cash, a deal that would provide it access to the kiosk business, streaming video services, DVD mailing services, and agreements with film studios and television networks.
It’s likely that Dish Network will tie in its own satellite television services Blockbuster‘s streaming packages. For example, new customers of Dish Network may see promotions and discounts if they sign up for Blockbuster streaming or disc by mail rentals. In comparison, current Blockbuster subscribers may be prompted to switch to Dish Network for their traditional TV services.
It may be recalled that Blockbuster has made a significant push in recent years towards the mobile space, entering partnerships with a number of smartphone manufacturers and wireless carriers to bundle their streaming video apps on new devices.
Dish Network could also leverage those agreements to bring mobile television and streaming video to users much like Comcast does with its Xfinity TV mobile apps without having to build the apps themselves.
Ultimately, Dish Network’s acquisition of Blockbuster could give the company a leg up against competitors like RedBox that doesn’t have a traditional TV service to fight Dish Network and Netflix that don’t offer traditional TV or kiosks.
