After my initial “Whaaaaat?” reaction to Dish Network’s $320 million bid for what’s left of Blockbuster Video, I started to imagine what the satellite TV provider might do with Blockbuster’s assets. The result could be fun for entertainment addicts and gadget fans.
I predict Dish will use the best Blockbuster locations to demo and sell its cool TV-everywhere technology like Slingbox and GoogleTV , which have been a tough sell to Dish’s 14.1 million price-conscious customers.
Remember the month-long Fox Networks’ blackout on Dish last fall? National Geographic, FX and Fox Sports Networks went dark for a month during football season, and angry Dish subscribers bailed in droves. By hooking up with Blockbuster, Dish acquires leverage with the studios to get the shows and movies customers want – at the bargain-basement price it demands.
Pivotal Research Group analyst Jeff Wlodarczak wrote in a research note that “Blockbuster’s roughly 1 million DVD mail-order customers and its robust online business could lead to a Netflix-like product for Dish and non-Dish customers.”
Here’s the context: Dish, which added just 33,000 subscribers in 2010, admits that it wins customers by cutting prices. luring away eyeballs from DirecTV and cable.
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