Dish Network Taking Over 500 Blockbuster Leases

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News Posted: Thu, Apr 21 2011 1:01 AM
Would you invest any time or money into Blockbuster at this point? It would take a really bold (or really rich...or really bored) person to say "yes," but Dish Network must fit that criteria. The company has just decided to broaden their scope when it comes to Blockbuster, and that apparently means taking over around 500 Blockbuster leases. Dish will soon by BB's parent, and they're agreeing now to take over 500 physical stores as they consider ways to turn things around in a world obsessed with digital downloads.

The report was spotted in Dish's recently filed papers with the U.S. Bankruptcy Court Southern District of New York, coming around a month after Dish won an auction for BB valued at $228m in cash. If everything goes smoothly, that deal should close today, and while Dish is taking over those leases, they aren't making public their plans. Will they be rolled into something else? Sold for scrap? Rebuilt from the ground-up? Who knows, but we still maintain that physical video stores have numbered days.
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And unfortunately the one by my house is not one of the 500. I usually only go when my netflix are in the mail and I'm desperate; I guess it's redbox from now on. I think BB can turn around if they redo their pricing model(including late fees) and actually tell people they got bought out, completely start fresh.

Now you're just mashing it!

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rapid1 replied on Thu, Apr 21 2011 11:38 AM

I personally think this is a bad idea for one reason a brick and mortar location is nothing more than a large cash investment for zero return now. Yes some places don't have broadband and therefore the business does hit these locations. However there is generally also some local locations at these places. A cost streamlined method of business now has no building, and therefore no costs associated with it in these land based locations such as insurance utilities and maintenance etc which are big cash guzzlers for nothing. Plus now if you want a movie in a large amount of locations you can get it on demand from your cable or satellite provider for less than it would cost you in gas to go to a brick and mortar location and get it instantly not to mention the amount of time to get a movie.

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omegadraco replied on Thu, Apr 21 2011 11:49 AM

Not sure why they will be taking over 500 locations mine is also not one of them. But using the blockbuster name for their own On Demand services seems more like the main reason why they bought them.

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digitaldd replied on Thu, Apr 21 2011 12:08 PM

Gee and I thought Dish bought Blockbuster for its licenses. It was just starting to get its feet wet in the streaming market and had been doing disc rental via snail mail for a few years so it does have some very valuable licenses for any company that wants to get into the streaming game.

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Inspector replied on Thu, Apr 21 2011 1:38 PM

Like you all said, it was a pointless buy. Would be a interesting wait to see what they will do :)

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turn them into waffle houses

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I work for DISH Network and I know that they just lowered the rental prices at Blockbuster. They’re also offering new subscribers 3 months free of Blockbuster’s mail-in services. I see good things in the future because these two combined have a massive arsenal of movies and having video games as part of the repertoire doesn’t hurt either.

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AKwyn replied on Fri, Jun 10 2011 2:38 AM

Hey, great to see good things are going on between Dish Network and Blockbuster.

It seems like the customer wins in the end.


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Thanks for the update techievega My understanding was they were going to close down blockbusters to have dish show rooms which seemed silly. It is nice to see they are actually doing something with the company. Unfortunately for my neighborhood we no longer have anywhere but Redbox to rent a physical movie.

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