After a bankruptcy auction that extended into the early hours on Wednesday, Dish Network announced that it had emerged as the winner of Blockbuster’s assets, with a bid valued at $320 million.
The executive vice president believes that the purchase of Blockbuster provides a complement to their current video offerings as well as presenting cross-marketing and service extension opportunities.
Dish Network gains a large retail presence where they can potentially sell services. The highly recognizable brand and more than 1,700 stores locations provide great opportunities. I believe that this will help Dish Network compete in the satellite provider business more effectively as well as increase sales with more awareness in a very recognizable, and popular brand (Blockbuster).
4 comments:
Although blockbuster is a very well known brand, hardly anyone seems to be able to compete with online rentals or the red box idea.
Will dish network continue to try to sell dvds in the store? Charge late fees? How are they going to change, because otherwise it seems that they bought a very unattractive business.
Blockbuster may need to change and conform to the new trend of delivery, and online movie rentals. Netflix has become extremely popular and very convenient for members. This is where movie rental business seems to be going.
The changes in the market for movie rentals is a good example of the things of the past not being able to compete with the new innovation of the present. Blockbuster didn't do enough to try to adapt and improve and thus went bankrupt. The movie industry is really interesting to look at because of all the changes and innovations that have been made in the past few decades and in particular, the past couple years. There's a lot of material incentive to enter this market with newer, more convenient products and thats what companies like Dish Network and Netflicks have been successful in doing.
Firms are going to be confronting these sort of problems all the time in the near future. With technology advancing at such a rapid rate, things such as online movie rentals and redbox are seeming more and more feasible and become more attractive to consumers. This shows that even some of the best companies, like blockbuster, are going to have to take a complete 180 in altering their strategies in order to remain competitive.
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