Blockbuster Streaming Service To Be Announced By Dish Network

SAN FRANCISCO -- Dish Network Corp. is expected to unveil an Internet video service Friday in a move that could give movie lovers another reason to abandon Netflix.

The service will be offered through Blockbuster, the video store chain that Dish Network bought out of bankruptcy court for $321 million five months ago.

Netflix's success as a subscription service that mails rented DVDs and streams video over high-speed Internet connections played a pivotal role in Blockbuster's downfall.

Now, Dish and Blockbuster are apparently hoping for a little payback as Netflix faces a customer backlash triggered by changes to its prices and format. Earlier this month, Netflix raised its prices by as much as 60 percent and then riled its subscribers again this week by revealing its intention to spin off its DVD-by-mail service into a separate website called "Qwikster."

The uproar is causing mass customer cancellations and contributing to a sell-off that has seen Netflix's stock price plunge by more than 50 percent since the price increase was announced in July.

Although Dish is based in Englewood, Colo., the company decided to come to San Francisco to roll out its assault against Netflix, which is based about 50 miles to the south in Los Gatos, Calif. Dish Network CEO Joe Clayton and Blockbuster President Michael Kelly are supposed to be on hand to discuss "a stream come true," according to an invitation sent out to reporters.

Comments

[Fletch55]

04:52 PM on 09/23/2011

If they can offer a combined cd and streaming service for $9.99 a month they will destroy netflix. I have to say Blockbuster has the upper hand right now if they pull this off right. If they go seperate services like stream or dvd then its a no go but if they do what netflix stopped doing its a wrap netflix will have killed itsself since Blockbuster gets movies quicker then Netflix did.Has to be all in one service for under $10 to make it though

[gman thebrave]

01:09 PM on 10/01/2011

Interesting comment Fletch55 because some do not feel the way you do from the comments I have read who are loyal to Netflix. My guess is those people haven’t sold their shares yet like so many have recently with the debacle with Starz. It seems these content providers rely on the revenue from pay TV subscribers and don’t like people cutting the cord. I can’t wait to get the Blockbuster Movie Pass as an employee of Dish Network on October 1st. My customers will be happy to have everything on one bill because includes over 20 movie channels too! If you want your movies anywhere you go just ask for the Sling adapter that makes all of this possible on your mobile internet enabled device. Over 100,000 movie titles and TV shows and Blu-ray doesn’t cost extra like Netflix and Redbox! I have my movies mailed to my home as a Blockbuster member, but you can stop at one of Blockbuster’s convenient locations or stream from your home 722 receiver or computer. Now that Blockbuster has streaming, watch out Netflix!

[olehippi]

02:59 PM on 09/23/2011

Unfortunately for potential Blockbuster customers....and fortunately for Netflix....Dish Network fumbled away an incredible opportunity to literally capture the entire streaming movie market by attaching their Blockbuster package offer to current and future Dish Network customers only. How stupidly short-sighted of the people running Dish.

[Blah]

04:02 PM on 09/23/2011

Wait, so are you saying that Dish should have only offered the streaming service to people with Dish Network?

Edit: Ok, my reading comprehension was a little off. I glanced over some more comments and it looks like they are only offering this to Dish customers right now.

Yeah, bad idea. There's no way I'd get Dish to have this service.

[Fletch55]

04:53 PM on 09/23/2011

Yes but now they can potentially kill netflix completely if they offer the same thing Netflix did. Make it dvd and streaming for $9.99 and they will enrool millions. They cant divide it or try to charge over $9.99 though.

[BruntLIVE]

02:26 PM on 09/23/2011

Blockbuster didn't see Netflix or Redbox coming. They paid the price but the comeback is on. Blockbuster was the foundation, I still have my card....they are legends. They brought us into DVD and we loved them for it. Love them again.

[jed Houston]

02:16 PM on 09/23/2011

Yeah, I wouldn't want to have Dish in order to get this, and Blockbuster currently only offers crappy standard definition on its streaming movies. Don't forget that Blockbuster was the original enemy, and Dish is that sort of company as well. No thanks for me. Netflix has hit a bump in the road, but it's still a company with a lot of promise, and they were the original GOOD GUYS.

[Fletch55]

04:56 PM on 09/23/2011

The new service isnt going to require dish network as that is known not to work. If they are smart they become what netflix just left at a good fair $9.99 for both streaming and dvd services and they win. They have better contracts with studios so they get new movies 30 days quicker and would have the larger choice. The dish part will allow them to upgrade to hd offerings and even 3d .If they play this right and not stupid by trying to seperate the services or exceeding $10 a month they can put netflix out of business in a few months.

[airmikee99]

02:11 PM on 09/23/2011

I can still remember what the experience was like dealing with Blockbuster before Netflix arrived.

Thanks, but no thanks. I can find plenty of other sources to be abused by and disrespected, I don't need to go through that with Blockbuster again.

There's a reason I cut up my membership card inside a Blockbuster store and threw the pieces all over the place, and it wasn't because I was pleased with the customer service.

Netflix still has a few more years of boneheaded and stupid maneuvers before they'll even be close to approaching Blockbuster status.

[rodneyhopper]

02:13 PM on 09/23/2011

"There's a reason I cut up my membership card inside a Blockbuste­r store and threw the pieces all over the place, and it wasn't because I was pleased with the customer service."

Sociopathy?

[airmikee99]

02:23 PM on 09/23/2011

Definitely, cause that's one thing that all the famous sociopaths are known for, not for killing and raping, they were famous for cutting up membership cards.

/facepalm

[opressor]

02:07 PM on 09/23/2011

they need to get a channel on the Roku system, then i would take a look.

[Fletch55]

04:58 PM on 09/23/2011

Why? The roku makes no sense if you have a laptop or computer or game console as those have no extra cost as you do with the roku but if you have nothing but the roku I guess but only cost for any of the others is a $5 hdmi cord and your full on internet on a big tv with full keyboard and mouse and full internet streaming and ability.

[opressor]

07:07 PM on 09/24/2011

why? well i don't want to buy a game console or an additional computer, we got the Roku with chase reward points...no out of pocket expense. I have one Tower that is a dedicated audio production machine that i have no interest turning into a TV/Media server...our portable is a smaller netbook that i don't want to constantly drag around, hook and unhook to watch tv. so in My personal case it makes Perfect sense. i use a digital converter box with an outdoor HD/UHF/VHF antenna for 25+ channels of free tv. so for less than $60 a month we have Hulu+ Amazon Video Netflix and all the private channels of the Roku and all of the free channels over the airwaves....not sure what doesn't make sense, to each his own. Not to mention Roku is developing for more net streaming type of viewing.

[adam646l]

02:06 PM on 09/23/2011

Netflix got greedy. I had the 3 movies at a time plan with Netflix. When they pulled their little stunt I sent them packing. Only to realize that I do not miss them at all. I suggest others do the same. Perhaps they'll get the message. Corporate greed however gives me pause to think they will not do anything other than try to rake in every possible nickle. Glad I sold of my stock. I saw this coming. Thanks Netflicks! I made a buck and fired you. Nice to give it to the big guys for once.

[J Lancaster]

02:13 PM on 09/23/2011

Are you insane? You can't afford to pay an extra $5 a month for a great service?

[RattleCat]

02:19 PM on 09/23/2011

I can.  But first I'd like to get the great service.

[adam646l]

02:28 PM on 09/23/2011

Not a question of what I can and can not afford. It is a question of the value of the product for the price I am paying. Simply put, for me, Netflix is no longer a bargin.

[Ender Wiggin]

02:22 PM on 09/23/2011

you're a fool. netflix took the hits because they refused to pass on tiered pricing to customers, or allow streaming and dvd's to be leveraged against each other to hike price increases.

So pat yourself on the back, while the content industry screws things up once again.

[adam646l]

02:35 PM on 09/23/2011

I most certainly am not a fool. Netflix is in trouble. Why should I care about how they got into trouble? I decided that I did not like the way in which they changed the way they did business. I was a long term customer for several years. I no longer considerd their sevice woth their asking price. I sold their stock because I knew people would jump ship.
You may call me a fool if you wish. However, my money, my investment, and ultimaly my decision.

[Fletch55]

05:02 PM on 09/23/2011

Your way off the entire move was based on Netflix looking to get out with a profit. They seperated the dvd side as they see it as dying but know it can be sold now for a profit to someone but the netflix name had to be saved to sell off the streaming side more then likeing to prime of Amazon but Amazon didnt want the dvd side due to the taxes it would have to pay for physical content and brick and morter shipping. If its streaming based no physical content taxes are non existant. This way Netflix sells both and walks away with billions.

[Contact1972]

01:59 PM on 09/23/2011

When they open it up for everyone I'll make sure I give it a look see.

[RattleCat]

01:51 PM on 09/23/2011

Staged rollout only to Dish customers for now.  $10 for everything - 1 DVD mail, streaming, and games.  Some free promotions up front.  All bundled on current Dish bill.

A great add on to continue competing against DirectTV - which of course was their focus.

As a competitor to Netflix streaming, we'll just need to wait and see what the next stage rollout looks like.

[jgeurian21]

01:48 PM on 09/23/2011

Total let down. It was just announced this is only for Dish Network customers and for an extra $10 a month on the bill.

http://www.engadget.com/2011/09/23/dish-network-blockbuster-unveil-blockbuster-movie-pass-all-incl/

[Bheckel169]

01:47 PM on 09/23/2011

Having had the unhappy experience of working with Charlie Ergen of Dish Network, I can tell you without hesitation, this is one slimey company. I wouldn't do business with them if my life depended on it. Highly unethical so watch your pocketbooks.

[lonbwoy]

01:45 PM on 09/23/2011

woah, if Dish get this right and the streaming service has as many options as the dish satellite service, this could FINISH Netflix!!.

[rodneyhopper]

01:49 PM on 09/23/2011

Big swing and miss today, though.

They're offering to Dish subscribers only for $10/mo.

They have nothing for non-Dish subscribers, but even if they do, it would end up being as much or more than Netflix.

No thanks, BB. No thanks, Dish.

[rodneyhopper]

01:44 PM on 09/23/2011

I was hopeful for this, but it turned out to be a total dud.

All they announced was an add-on package for DISH subscribers, with butkus for people really looking at an alternative to Netflix.

Their CMO said more than once they feel like consumers want streaming and pay tv, but they want it in one bill. They're under the impression that people who use Netflix have no interest in cord cutting.

Silly little men in suits. They just don't get it.

[ILoveGreatDanes]

01:00 PM on 09/23/2011

I'm on board with the Blockbuster bandwagon, then! Apparently Dish buying them out was a sound business decision. I bet Dish never saw this coming. . .

[RattleCat]

01:01 PM on 09/23/2011

"I bet Dish never saw this coming. . ."

:)

[stepintothelight]

01:43 PM on 09/23/2011

Someone at Dish deserves a promotion. Canceled Netflix two weeks ago!!!

[Cordell Cameron]

12:57 PM on 09/23/2011

Blockbuster should get on XBOX Live and force Netflix out.

[stepintothelight]

01:44 PM on 09/23/2011

ATV2 also!!!