Since the Blockbuster auction earlier this year, we were curious to see what Dish Network was going to do with all the stores they ended up with. On the show, we had several speculations, like branding purposes, or that they would keep open a select number of the stores to sell their Dish Network TV service. Call us crazy, but we were hoping they would do something with the $320 million purchase.
Well, some of our predictions came true, as this week, Dish Network and Blockbuster, LLC announced that "despite our efforts to reach reasonable terms, some property owners have closed stores." However, Dish will keep open over 1,500 of the locations and retain 15,000 employees. To compare, when Blockbuster went into bankruptcy, they had around 3,000 stores, and when Dish acquired them they were left with over 1,700.
For more on the story and the press release, click the break.
This announcement comes off the heels of Netflix increasing their prices again, so it seems like Dish is looking to capitalize on some of the customers that may be looking for a new home.
Blockbuster has offered Netflix customers a 30-day trial of either of their two video plans, however neither of them have a streaming option. The plus to the plans though is that the Total Access package does offer movies 28 days before Netflix and can also provide unlimited in-store exchanges on video games, plus, no upcharge for Blu-ray discs. It's almost like a combo on Netflix and Gamefly, minus the streaming.
Can keeping over 1,500 stores open save the company? There's still a long way to go to get back to even a stable position for Blockbuster, when, at its peak was valued at over $5 billion in 2002.