Is Dish’s Blockbuster Hopeless?
There wasn’t much help for Blockbuster when Netflix (NASDAQ:NFLX) launched an online super competitor, and as competition gets even more fierce in the streaming market, Blockbuster is having to make more concessions to remain a viable brand.
Netflix really proved its mettle when Blockbuster had to file for bankruptcy in 2010. Competition from streaming sites and mail-delivery services made it hard for the company to draw customers out to stores, and Netflix’s dominance over the streaming and mail-delivery video market made it hard for Blockbuster to enter, even with its brand-recognition.
After Blockbuster’s bankruptcy, Dish Network (NASDAQ:DISH) bought it, but having a strong owner still hasn’t gotten the Blockbuster brand in the clear. It’s still in cought the crossfire between Netflix, RedBox (NASDAQ:CSTR), and even Amazon (NASDAQ:AMZN)…
As the competition for the streaming market ramps up between Netflix, RedBox’s new RedBox Instant, and Amazon’s own streaming service, Dish still sees value in the Blockbuster brand and will continue to keep some stores open. However, the company has announced that it will close about 300 stores and cut about 3,000 jobs. Dish Spokesman John Hall said the company will close unprofitable stores and continue analyzing stores’ profitability, suggesting that there is still some profit to be had from the Blockbuster brand — though where is unclear at this point.
It is clear that Dish is focusing on Blockbuster’s profit, but decidedly less clear how the company will address the ever-growing competition from Netflix, RedBox, and Amazon in the streaming and mail-delivery markets.
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