Dish Network buy Blockbuster

[Smokey]

http://www.euronews.net/wires/reuters-business/images/2011-04-06T081725Z_01_BTRE7350N1600_RTROPTP_3_OUKBS-UK-BLOCKBUSTER-DISHNETWORK.JPG

(Reuters) - Dish Network the second-largest U.S. satellite TV company after DirecTV, won Blockbuster Inc in a bankruptcy auction for $320 million, further broadening its business beyond satellite TV and setting up a possible showdown with Netflix.

Dish said the deal, which includes more than 1,700 Blockbuster stores, covers "substantially all" of the rental chain's business, and likely gives Dish the rights Blockbuster had to stream movies over the Internet, the Blockbuster brand name and customer lists.

"This is very clever," said Todd Mitchell, an analyst with Kaufman Brothers. "Dish can transition Blockbuster from a retail to a streaming model so you have basically a Netflix-like offering."

When Blockbuster filed for bankruptcy in September it said it had about 1.3 million subscribers for its monthly or annual rental services. Dish is expected to continue to close Blockbuster stores, which have already been cut nearly in half during its six months in bankruptcy.

It is a dramatic fall for Blockbuster. Mail-order and then digital competitors have steadily eaten into its business, which at its peak in 2002 had a market value of $5 billion.

http://www.reuters.com/article/2011/04/06/us-blockbuster-dishnetwork-idUSTRE7351VA20110406?feedType=RSS&feedName=technologyNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtechnologyNews+%28N ews+%2F+US+%2F+Technology%29

[bobsticks]

That's an awful lot to pay for some lists and streaming rights. Are there any physical assets besides the merchandise and stores included in the deal? I find it hard to believe that Dish couldn't have set up it's own structure and marketing program for less.

[pixelthis]

That's an awful lot to pay for some lists and streaming rights. Are there any physical assets besides the merchandise and stores included in the deal? I find it hard to believe that Dish couldn't have set up it's own structure and marketing program for less.

Like a bald man buying a comb.
Don't forget redbox. You can get THREE BLU discs for less than one at
Blockbudster.
But hey! What about the physical plant? MAYBE they have plans for 1700 B&M'S
in a collapsing real estate market, like a chain of muffler shops or something.
Well, they have a ton of used discs, when you can get new ones for five bucks.
WHEN movie gallery cratered I doubled my Blu collection, getting insane deals like
Blade Runner for four bucks. Looks like more fodder for the vultures, and maybe
DISH going toes up if they don't lay off the crack at corp headquarters.:1:

[SlumpBuster]

Yeah, this is a bad idea. I'm willing to bet Dish has already penetrated the market as deep as they are going to go. Adding content will not result in more customers. I had Dish for two years and I liked it - when it actually worked. Rain = no tv. Snow = no tv. Wind = no tv. And my favorite: Your trees grew = no tv.

[Smokey]

I'm guessing Dish bought Blockbuster for name more than anything else. From news Routers, it seem Dish Network is trying to get into wireless network system as earlier this year it bought DBSD, which is one of three "mobile satellite services" companies that own rights to valuable broadcast spectrum.

They also bought Hughes Communications back in February which is provider of broadband satellite network products. Together, the deals could give Dish the tools it needs to deliver movies to phones and iPads. And use Blockbuster as virtual store front for the delivery of those contents.

Your guess is good as mine as what are they planning to do with physical stores :)

[pixelthis]

Yeah, this is a bad idea. I'm willing to bet Dish has already penetrated the market as deep as they are going to go. Adding content will not result in more customers. I had Dish for two years and I liked it - when it actually worked. Rain = no tv. Snow = no tv. Wind = no tv. And my favorite: Your trees grew = no tv.

when the leftovers of a hurricane came thru town at 45mph my Dish never faltered.
CABLE WAS DOWN FOR A WEEK ALL OVER TOWN.
Thats what cable companies dont tell you. YEAH, bad weather might hurt
a dish, but it might take down cable lines also. AND WHEN THE SUN COMES OUT,
you have your dish, and cable subscribers are waiting for repairs.
ANYWAYS , get out the popcorn and watch as the long knives come out in the already
crowded VOD market.:1:

[Woochifer]

That's an awful lot to pay for some lists and streaming rights. Are there any physical assets besides the merchandise and stores included in the deal? I find it hard to believe that Dish couldn't have set up it's own structure and marketing program for less.

It's not much at all when you consider that Blockbuster has streaming deals in place with all of the studios. Those rights alone are potentially worth far more than what Dish paid.

Netflix's most recent streaming rights renewal negotiations with the studios have all been in the nine and ten-figure range. This is strictly a media play, so depending on how much time is left on all of those deals that Blockbuster had, Dish has a lot of options for ramping up its on-demand/streaming products.

And Dish might not have a choice, given how they've positioned themselves. More so than the other major cable/satellite providers, Dish has been playing hardball on carriage fees with the content providers, which has led in particular to regional sports channels getting removed from their channel grid in some markets. If Dish can position the streaming options as part of their service, they can offer far more on demand content, and use that to make up for the subscribers they've been losing because they're willing to let some of their channel offerings lapse.

Say what you will, but it looks like Blockbuster's retail locations are toast. Those bring absolutely no value to this transaction, aside from some leases in desirable locations that can be pawned off


Yeah, this is a bad idea. I'm willing to bet Dish has already penetrated the market as deep as they are going to go. Adding content will not result in more customers. I had Dish for two years and I liked it - when it actually worked. Rain = no tv. Snow = no tv. Wind = no tv. And my favorite: Your trees grew = no tv.

Actually, the entire pay TV industry has maxed out its market penetration, which is about 90% of all TV households. Dish is likely using this acquisition as a hedge to keep its subscribers from defecting (by expanding on demand options, as they drop other channels), and to capture any "cord cutters" that might be out there.

The thing about satellite is that indeed the service quality can vary by area and by the weather conditions. I've only had weather outages on a few occasions, but then again, we don't get a lot of thunderstorms out here. But, last week we had high winds that apparently blew the dish out of alignment enough to knock out the service altogether. The technician said that all dishes will eventually need to get realigned because it just happens over time


when the leftovers of a hurricane came thru town at 45mph my Dish never faltered.
CABLE WAS DOWN FOR A WEEK ALL OVER TOWN.
Thats what cable companies dont tell you. YEAH, bad weather might hurt
a dish, but it might take down cable lines also. AND WHEN THE SUN COMES OUT,
you have your dish, and cable subscribers are waiting for repairs.

If the utilities are underground, as they are in newer developments, then the cable is far less subject to weather issues. For one thing, you don't lose the picture during major thunderstorms. Last week, we had a major storm, that blew our dish out of alignment. Went without satellite service for three days until the technician came out and realigned it.

[SlumpBuster]

Pix, I'm glad Dish worked for you. But up in Michigan the angle for the dishes is so low that trees get in the way. I live in an old neighborhood with lots of old growth trees. Its virtually impossible to get a clear line of sight to the satellite. Dish Network went out at least twice per week. We have a regional cable company (Wow Cable) that hasn't gone out once in 4 years.

[SlumpBuster]

Wooch, I wouldn't be surprised if cable is losing ground in certain demographics. Anecdotally, a bunch of my friends (all ages 30-40 with young kids) have gotten rid of cable in exchange for and HD antenna and Netflix.

[pixelthis]

It's not much at all when you consider that Blockbuster has streaming deals in place with all of the studios. Those rights alone are potentially worth far more than what Dish paid.

Netflix's most recent streaming rights renewal negotiations with the studios have all been in the nine and ten-figure range. This is strictly a media play, so depending on how much time is left on all of those deals that Blockbuster had, Dish has a lot of options for ramping up its on-demand/streaming products.

And Dish might not have a choice, given how they've positioned themselves. More so than the other major cable/satellite providers, Dish has been playing hardball on carriage fees with the content providers, which has led in particular to regional sports channels getting removed from their channel grid in some markets. If Dish can position the streaming options as part of their service, they can offer far more on demand content, and use that to make up for the subscribers they've been losing because they're willing to let some of their channel offerings lapse.

Say what you will, but it looks like Blockbuster's retail locations are toast. Those bring absolutely no value to this transaction, aside from some leases in desirable locations that can be pawned off



Actually, the entire pay TV industry has maxed out its market penetration, which is about 90% of all TV households. Dish is likely using this acquisition as a hedge to keep its subscribers from defecting (by expanding on demand options, as they drop other channels), and to capture any "cord cutters" that might be out there.

The thing about satellite is that indeed the service quality can vary by area and by the weather conditions. I've only had weather outages on a few occasions, but then again, we don't get a lot of thunderstorms out here. But, last week we had high winds that apparently blew the dish out of alignment enough to knock out the service altogether. The technician said that all dishes will eventually need to get realigned because it just happens over time



If the utilities are underground, as they are in newer developments, then the cable is far less subject to weather issues. For one thing, you don't lose the picture during major thunderstorms. Last week, we had a major storm, that blew our dish out of alignment. Went without satellite service for three days until the technician came out and realigned it.

GOOD FOR YOU!

I am not that handy, but have managed to install all of my SAT systems.
Even so, lining up a dish is not that complicated.
This is why you learn the basics, so you won't have to wait three days, when all you have to do is rotate a dish until the signal meter shows a strong signal.
THE REASON my dish install didn't fail is because I put it in. A lot of techs these days
are idiots. They love to use the composite out on a sat box to get the signal to your
tv, AND OTHER CRIMES.
I fix all of my computers and HT problems, something dies and it has to be expensive
for me to have it fixed.
SURVIVAL in the dumbed down 21st century.:1:

[Woochifer]

Wooch, I wouldn't be surprised if cable is losing ground in certain demographics. Anecdotally, a bunch of my friends (all ages 30-40 with young kids) have gotten rid of cable in exchange for and HD antenna and Netflix.

But, if you look at the overall pay TV market, it has not lost subscribers. So many of these "cord cutter" stories that get regurgitated in the tech press focus on cable subscriptions, where indeed they've lost subscribers for close to a decade. But, the tech press also ignores the lateral shift from cable to satellite, fiber, and other IPTV services. That's where the growth has gone.

Netflix is a nice service, but it's definitely not a replacement for cable channels, especially if you watch a lot of sports or news programming.


GOOD FOR YOU!

I am not that handy, but have managed to install all of my SAT systems.
Even so, lining up a dish is not that complicated.
This is why you learn the basics, so you won't have to wait three days, when all you have to do is rotate a dish until the signal meter shows a strong signal.
THE REASON my dish install didn't fail is because I put it in. A lot of techs these days
are idiots. They love to use the composite out on a sat box to get the signal to your
tv, AND OTHER CRIMES.
I fix all of my computers and HT problems, something dies and it has to be expensive
for me to have it fixed.
SURVIVAL in the dumbed down 21st century.:1:

Not that simple if you're talking about a 5 LNB dish pointing towards multiple satellites, where the adjustments are on three axes. That's why Direct doesn't recommend that consumers align the multi-satellite dishes themselves. In my situation, one satellite was still at 90% signal strength, while others were below 50%.

And if learning how to align the dish yourself is the solution, then how does that make satellite a more weatherproof setup than cable? Most consumers are not going go up on their roof and mess around with the dish.

[pixelthis]

But, if you look at the overall pay TV market, it has not lost subscribers. So many of these "cord cutter" stories that get regurgitated in the tech press focus on cable subscriptions, where indeed they've lost subscribers for close to a decade. But, the tech press also ignores the lateral shift from cable to satellite, fiber, and other IPTV services. That's where the growth has gone.

Netflix is a nice service, but it's definitely not a replacement for cable channels, especially if you watch a lot of sports or news programming.



Not that simple if you're talking about a 5 LNB dish pointing towards multiple satellites, where the adjustments are on three axes. That's why Direct doesn't recommend that consumers align the multi-satellite dishes themselves. In my situation, one satellite was still at 90% signal strength, while others were below 50%.

And if learning how to align the dish yourself is the solution, then how does that make satellite a more weatherproof setup than cable? Most consumers are not going go up on their roof and mess around with the dish.

Because you have to wait, sometimes for days, for cable to be fixed. Wires have to be restrung, etc. With Sat, it quite often is just till the weather clears.
During the visit of leftovers from a hurricane, cable was out, some places for a week.
I never lost my dish service at all, and we're talking 45 mph winds.
Just saying that cable ads about losing sat service during weather are a bit misleading, is all.
And more complicated doesn't mean more impossible. You run a cable to a small tv
at the dish and go to work. Its not that hard, harder to do without service(TV junkie
here).
WHEN SETTLERS broke a wagon wheel going west, they couldn't call triple A.
But to each his own, some of us just don't have the watch makers gene. And those
people have to wait three days.
And trust to the competence of strangers.:1:

[Woochifer]

Because you have to wait, sometimes for days, for cable to be fixed. Wires have to be restrung, etc. With Sat, it quite often is just till the weather clears.
During the visit of leftovers from a hurricane, cable was out, some places for a week.
I never lost my dish service at all, and we're talking 45 mph winds.

But, again consider that in many communities, especially big cities and newer communities, the utilities are underground. This means that the cable service in those areas are completely unaffected by weather events. The dish is affected in that it's subject to interruption and potential alignment issues. We've never had cable service interrupted by weather, but the satellite has gone out a few times during heavy storms.


Just saying that cable ads about losing sat service during weather are a bit misleading, is all.
And more complicated doesn't mean more impossible. You run a cable to a small tv
at the dish and go to work. Its not that hard, harder to do without service(TV junkie
here).
WHEN SETTLERS broke a wagon wheel going west, they couldn't call triple A.
But to each his own, some of us just don't have the watch makers gene. And those
people have to wait three days.
And trust to the competence of strangers.:1:

Competence of strangers? The technician came out and fixed the problem, end of story. I did not get charged for it, and frankly I got better things to do than getting up on my roof and repositioning a 40 lb. satellite dish when somebody else will do it for free. Three days without Directv gave me a chance to watch some of the programs I had queued up on the DVR, and catch up on some movies.

In the 13 years I've had Directv service, this is the first time we've had to realign the dish. The technician did indicate though that the 5 LNB dishes are a lot more difficult to align, and don't take much movement to interrupt the service.

[pixelthis]

But, again consider that in many communities, especially big cities and newer communities, the utilities are underground. This means that the cable service in those areas are completely unaffected by weather events. The dish is affected in that it's subject to interruption and potential alignment issues. We've never had cable service interrupted by weather, but the satellite has gone out a few times during heavy storms.



Competence of strangers? The technician came out and fixed the problem, end of story. I did not get charged for it, and frankly I got better things to do than getting up on my roof and repositioning a 40 lb. satellite dish when somebody else will do it for free. Three days without Directv gave me a chance to watch some of the programs I had queued up on the DVR, and catch up on some movies.

In the 13 years I've had Directv service, this is the first time we've had to realign the dish. The technician did indicate though that the 5 LNB dishes are a lot more difficult to align, and don't take much movement to interrupt the service.

OBVIOUSLY you haven't dealt much with what passes as tech "support" these days.
For instance, three days to get out and fix a relatively minor problem?
ANYWAY, thanks for reminding me how convenient it is to have some tech background.
I live in a place where missing some games is a fate worse than death. And I just got
fed up with the high school dropouts they send to "fix" my gear. FOR INSTANCE, the force
required to blow a properly mounted dish out of alignment should have blown it off the house, not to mention the roof with it. It probably wasn't tightened properly the first time,
and most likely isn't this time either. So pray for good weather, or get ready to miss three more days of TV fyi:1:

[pixelthis]

AND IF A MULTI LNB is not far out of line, you will pick up some service.
Here's a hint. Be proactive. FIND a guy that will come right out and fix your dish
for a nominal fee. Won't charge much, will probably enjoy doing it.
I do minor chores for people all of the time, and while they usually throw a few bucks my way,
I do it to help, and I enjoy such things.
Things that are everyday to an enthusiast is JAPANESE HAIKU in the original language
to most civilians, things like hooking up receivers. Or fixing minor sat problems when
the system goes into the ditch.:1:

[Woochifer]

OBVIOUSLY you haven't dealt much with what passes as tech "support" these days.
For instance, three days to get out and fix a relatively minor problem?
ANYWAY, thanks for reminding me how convenient it is to have some tech background.
I live in a place where missing some games is a fate worse than death. And I just got
fed up with the high school dropouts they send to "fix" my gear. FOR INSTANCE, the force
required to blow a properly mounted dish out of alignment should have blown it off the house, not to mention the roof with it. It probably wasn't tightened properly the first time,
and most likely isn't this time either. So pray for good weather, or get ready to miss three more days of TV fyi:1:

This is the first service call for a dish realignment that I've made in my 13 years with Directv service, and 3 years with the HD service. The technician that came out indicated that it doesn't matter how much you tighten the screws, in a windy area, the dish will get out of alignment at some point, especially in the windy hillside neighborhoods, where he regularly makes repeat visits dealing with dish alignment issues. If it's not one storm, then it's the accumulation of movements over time. And with the 5 LNB dishes in particular, they require much more precise alignment than the older ones. In my case, it took about 3 years for the dish to go out of alignment.


AND IF A MULTI LNB is not far out of line, you will pick up some service.

But, if the receiver loses contact with the satellite that sends the guide data, then the service goes down, because the receiver no longer knows how to map the satellite signal to a specific channel. As I mentioned, one satellite was still showing 90% signal strength, but that doesn't matter if the receiver can't map the channels. The technician that came out showed me which satellite carries the guide data, so if I'm ever inclined to hop on the roof and start messing around with the dish, now I know where to look.


Here's a hint. Be proactive. FIND a guy that will come right out and fix your dish
for a nominal fee. Won't charge much, will probably enjoy doing it.

Considering that I waited 13 years before the first service call, I'm fine with letting someone else do it for free.

[Smokey]

The technician that came out indicated that it doesn't matter how much you tighten the screws, in a windy area, the dish will get out of alignment at some point, especially in the windy hillside neighborhoods, where he regularly makes repeat visits dealing with dish alignment issues.

Dish not only have to deal with wind, but it also have deal with snow and ice. I had Dish Network for several years and luckily my dish was in the balcony which i could realign. So anytime it snowed or iced glazed over, I had to go to balcony to clear it off. I imagine all the weight can cause it to get out of alignment onve in a while.

[Woochifer]

Dish not only have to deal with wind, but it also have deal with snow and ice. I had Dish Network for several years and luckily my dish was in the balcony which i could realign. So anytime it snowed or iced glazed over, I had to go to balcony to clear it off. I imagine all the weight can cause it to get out of alignment onve in a while.

Not to mention, the multi-satellite dishes required for HD service are heavier and larger, with more surface area and profile to pick up the wind gusts (and snow and ice). They also require alignment on three axes, instead of two, which makes the process more tricky.

[pixelthis]

Not to mention, the multi-satellite dishes required for HD service are heavier and larger, with more surface area and profile to pick up the wind gusts (and snow and ice). They also require alignment on three axes, instead of two, which makes the process more tricky.

But not impossible.
The trick is to use a small portable set, run a long cable out to it, so you can see what you are doing. TAKES awhile, but not three days.
And there is tight, and TIGHT. When a friend had his dish installed, I went out and tightened
all of the bolts, all of which were loose.
TO EACH HIS OWN, but it would drive me crazy to have a problem and at least not
try to fix it. SOMETIMES I can't, but I have to try.
During my electronics training some of the things I learned did not go obsolete,
mainly the "tricks" techs use when dealing with the public. Our instructor was a
B-19 pilot, and a TV service repairman. BEING in high school at the time, this was my first
experience with the "real" world, kinda rubbed off.:1:

[bobsticks]

B-19 pilot, and a TV service repairman. BEING in high school at the time, this was my firstexperience with the "real" world, kinda rubbed off.:1:

Perhaps it could be said that your knowledge of electronics is as operationally successful as the B-19...:D

[pixelthis]

Perhaps it could be said that your knowledge of electronics is as operationally successful as the B-19...:D

Thanks, since the B-19 had an exelent operational record.
ONE landed by itself once, the injured crew aimed it in the general direction.:1:

[Sir Terrence the Terrible]

Perhaps it could be said that your knowledge of electronics is as operationally successful as the B-19...:D

LOLOLOLOLOL.........BWAHAHAHAHAHAHA...gotta pee.......hehehehehe.....does anyone have a hanky?

[E-Stat]

Perhaps it could be said that your knowledge of electronics is as operationally successful as the B-19...:D
I particularly like the summary of that craft from Wikipedia:

"Despite advances in technology that made the XB-19 obsolete before it was even completed, the Army Air Corps felt that the prototype would be useful for testing. Its construction took so long that competition for the contracts to make the XB-35 and XB-36 occurred two months before its first flight."

rw

[bobsticks]

Wiki's useful for these types of situations...McGraw-Hill American Dictionary of Idioms too:

hoist with one's own petard
Fig. to be harmed or disadvantaged by an action of one's own which was meant to harm someone else.

Etymology: based on the literal meaning of hoist by your own petard (blown into the air by your own explosive device), an expression made popular in Shakespeare's play, “Hamlet”

[pixelthis]

I particularly like the summary of that craft from Wikipedia:

"Despite advances in technology that made the XB-19 obsolete before it was even completed, the Army Air Corps felt that the prototype would be useful for testing. Its construction took so long that competition for the contracts to make the XB-35 and XB-36 occurred two months before its first flight."

rw

Ah, yes, Wikipedia, the made up encyclopedia.
I read an excellent book on the B-19 once, can't recall the name, but quite informative.
My electronics teacher never talked much about his service in WWII, except that he did
fly bombers, particularly B-19's.
Nobody I HAVE MET THAT SERVED IN WWII talks about it much.:1:

[Woochifer]

Wiki's useful for these types of situations...McGraw-Hill American Dictionary of Idioms too:

hoist with one's own petard
Fig. to be harmed or disadvantaged by an action of one's own which was meant to harm someone else.

Etymology: based on the literal meaning of hoist by your own petard (blown into the air by your own explosive device), an expression made popular in Shakespeare's play, “Hamlet”

Cease and desist with these witticisms, or else you'll force me to uncork my greenie gun! Given the collateral damage that will result (i.e., the number of chiclets I'll need to pass out before handing another one over to you), you don't want that on your conscience, do you?

[bobsticks]

Do your worst...hehehe...unbeknownst to the general public I abdicated my throne quite some time ago...that King be not me, sir...:ciappa: