Dish Network, who purchased ailing Blockbuster this spring, reported today that its net income rose 30% in the third quarter, but its subscriber base dropped by 110,000. Details on the Blockbuster portion of Dish’s business are after the jump.
For the first full quarter of results for newly acquired Blockbuster, Dish announced that the division essentially broke even by bringing in $347 million. Unfortunately for Dish, the division will likely begin posting losses in future quarters as DVD acquisition costs rise. Dish’s stated goal is to have its BB stores break even while it implements new marketing ideas.
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Will Dish’s investment in Blockbuster ever pan out, Insiders, or was the deal a loser from the get-go?
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(via The L.A. Times)
Will Dish’s investment in Blockbuster ever pan out, Insiders, or was the deal a loser from the get-go?
The B&M stores will continue to close. The mail-order segment, used as loss leader leverage to sell more satellite subscriptions, will be the only remnant of the original BB.
What else can Dish do?
They will integrate it into the Dish business and leverage better movie pricing and BlockBuster will survive. Shocking, but true. There is room for Red Box and BB, however, I think Netflix is really in trouble now. They really punched their fanbase of loyal customers right ion the nuts.
I have been renting from BB blue boxes recently. I refuse to pay their $3.99 hot ticket prices for new movies, however. Redbox is $1.20. Nice thing about blue box is the free rental codes.
This article was carefully written by someone either in the employment of BB or one that should be. They’ve spent a fortune, made a few pennies up front, and haven’t lost all of them yet but will fourth quarter. Someone they made money either first or second quarter, most likely from selling physical property (closed stores, liquidating content etc) without repaying debt (bankruptcy is nice that way.)
Anyway, the reality is that they had one time income from some source and have returned to hemorrhaging cash again, yet haven’t lost enough to make Dish admit it yet.
I’m lucky enough to still have a blockbuster store by me and i cancelled netfilx when they increased prices and went with blockbuster by mail and for the same price as netflix blockbuster has a ton more benefits if there is a store close to where you live but surprisingly i like it and home BB can stay afloat.
We dropped Netflix and now get BB with our satelite. Much prefered as we can return at B+M to speed things up.
I have Netflix and will stick with it. I love their zillions of choices. Much better than BB.
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Why do you need a B&M store when a vending machine can accomplish the same thing? Imagine if Redbox put in a second machine with “classic titles” alone. That was the ONLY thing BB B&M had over Redbox. Oh, that and higher prices.
If I were Dish, I’d try to promote BB stores as a promotional item more. I’ve seen some of this and it’s very successful – IE, rewards for buying products, promotional prizes, ect.
While I love Redbox, it feels much more like a ‘treat’ to WIN a free blockbuster rental. The “Blockbuster Night” combos are really nice too.
Coke offers them as a rewards item. I like to see people give them as Christmas gifts too.
I think Blockbuster still has a place, even with increasing kiosk rentals. By simply being a B&M store, it seems more upscale.
We were delighted when DISH said what they would do for their current customers! We keep a list of Want To See Movies. We went to the Blockbuster program on our DISH site and entered all 42 of the movies we had on our list. Now they are coming and as soon as we watch one, we take it to the Blockbuster store and get a free exchange of any movie! So all Blockbuster free is way better than Redbox $1.20 movies.
The Block Buster Store by me did close. But the one about 8 miles from me is doing great. Had to stand in line for 15 min last week. I have the new deal. Two out at a time and then get two free movies when I take them back to the store.
At $16.50 a month. For 16 DVDS. That is great! The way I have it set up.
I get two new Movies on Tue. Tue nigh I watch one Take it back and get a new one.
Wed night I watch the other new one. By the end of the month I have had 16 DVS. Not bad at all.
BB will make it! Sorry NetFlix.
And Sorry to say. NetFlix kicked me in the Balls with there new deal. I was with them for years on end. And Happy. No more! I am a Block Bust guy now!
you can sink Netflix! And you are right now! Sad but true!
I had Netflix but as a Dish Network customer with the proper programming get 3 disc at a time for $10.00. I get 3+ mailed discs a week plus 3+ in store exchanges. I average 24-28 DVD’s a month. Blu Ray at no extra charge. I was averaging 12-16 with 2 at a time through Netflix for $8.99. The B&M stores are usually busy when I have been there. The stores remaining have good stock and the associates seem happy with Dish Network’s ownership. I think the Dish deal for subscribers will help keep the stores busy. I am sure they will close some under performing stores and may open a few in markets they are strong in satellite subscribers.