Dish Network Wants To Keep 500 Blockbuster Stores, Close 1,000

April 19, 2011 11:09 AM

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Dish Network Wants To Keep 500 Blockbuster Stores, Close 1,000

Dish Network (credit: AP)

DENVER (Denver Business Journal) – Colorado’s Dish Network Corp. plans to take on the leases for at least 500 Blockbuster stores after it buys the troubled video chain, according to bankruptcy-court filings.

That means that roughly 1,000 remaining Blockbuster locations likely will close their doors after the acquisition by Charlie Ergen’s Douglas County-based satellite TV company, on top of the thousands of other stores shuttered in recent years.

Lori

Maybe they should worry about delivering Rockies and Nuggets games in HD to their HD customers before they go buying Blockbuster…
Andre

I got it!!!! Charlie is not a fool. He and his team are very strategic thinkers. You do not become one of the riches men on the planet by making seismic business mistakes. I think the game here is poker and the risk isn’t really risk at all when you are holding 4 aces. In my opinion, it is all about subscribers and subscriber acquisition costs. Blockbuster is one of the original conduits for neighborhood movie rentals and probably contains a goldmine of (high quality data) potential customers that he now owns. The cost of acquiring the Blockbuster customer base vs the cost of his traditional methods to market and acquire new customers I would bet is greatly reduce. This will keep his profitability at a high rate. The fact that he will keep 500 of the 1700 stores open just means that he is exercising goodwill to keep people employed in troubled economic times – looks good to the bankruptcy courts and helps eliminate the noise from the Feds. I do not expect him to keep the 500 leases active for very long. They will be closed eventually and I believe in short order. It just makes sense with big players on the field like Redbox, Netflix and the like. Great bargain move Charlie!!! Direct TV, Comcast, RoadRunner, Verizon, Quest – what can you learn from this?

Nomo Blockbuster

It doesn’t seem like much goodwill on the part of Delusional Dish when over 70% of what’s left of Blockbuster stores and, therefore, employees will be gone once the stores close. Delusional Dish is engaging in Blockbuster’s methods of delaying the inevitable and giving people false hope that the stores still have a chance. The remaining 500 stores will likely be gone by the end of the year and/or Blockbuster will only have store presence in foreign countries. The sooner, the better.

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