Courtesy of Benzinga.
Bloomberg is reporting that DISH Network (NASDAQ: DISH) is planning on introducing a Blockbuster streaming-movie service which will compete with Netflix (NASDAQ: NFLX). The service is set to be unveiled next month according to the report. According to Bloomberg’s sources, DISH designed the timing of the release of Blockbuster streaming movies to coincide with price hikes by Netflix.
Customers who want to continue to receive mail-order DVDs from Netflix, along with the company’s streaming service are being charged $15.98 beginning this month, which is a 60% price increase. A price has not been set for DISH’s rival service yet. In April, DISH, which is the second largest U.S. satellite-TV provider, paid $320 million for most of Blockbuster’s assets after the company had declared bankruptcy. At the time, it appeared to be a somewhat peculiar move by DISH.
According to sources, the new movie service may include Blockbuster on-demand movies that DISH customers can watch on television sets and Blockbuster may offer streaming services along with its mail-order and in-store DVD rentals. Furthermore, the new offering is expected to include content from Starz LLC, which announced on Thursday that it had stopped negotiations with Netflix to renew a content deal for next year. This news sent NFLX shares down around 9% on Friday to $213.05. DISH Network shares closed the session down 2.80% at $24.30, well off of their worst levels.
