Michelle Clancy ©RapidTVNews | 04-08-2011
U.S. satellite operator DISH Network has confirmed that it will use its acquisition of the bankrupt Blockbuster movie rental company to launch its own streaming video service, effectively directly taking on Netflix and its 23 million subscribers.
DISH bought Blockbuster in April at auction for $320 million, leaving many curious as to what he operator was planning to do with the underperforming company that was taken down from its king's perch by Netflix in a rather spectacular fashion.
Joe Clayton, DISH president and CEO, told the Los Angeles Times: "Everybody's enamoured with Netflix. Who's to say we can't do the same thing?". Yet he went on to say that DVD rentals and sales would be the main focus, with DISH keeping most of the Blockbuster brick-and-mortar locations open, followed by the streaming service and a potential wireless play (DISH is sitting on $3 billion worth of spectrum).
Blockbuster does have an immense library of content and ingrained relationships with studios and media companies to bring to bear on DISH's upcoming plans.