The Associated Press reports that Dish Network, which is acquiring bankrupt Blockbuster for about $228 million, has agreed to assume some 500 of the retailer’s leases as it takes control of the company.
While the story notes that this means that Blockbuster - which has been largely eclipsed by Netflix and iTunes on one side and Redbox on the other - will continue to have a physical presence, there also is the suggestion that it will be severely curtailed. Blockbuster already has closed a number of stores, but currently operates about 1,700 stores around the country - a lot more than the 500 that Dish Network is committing to operate.
While the story notes that this means that Blockbuster - which has been largely eclipsed by Netflix and iTunes on one side and Redbox on the other - will continue to have a physical presence, there also is the suggestion that it will be severely curtailed. Blockbuster already has closed a number of stores, but currently operates about 1,700 stores around the country - a lot more than the 500 that Dish Network is committing to operate.
- KC's View:
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Hard to imagine that Dish Network is going to get $228 million in value from Blockbuster. But I love a mystery, and look forward to see what the company has in mind. Who knows? Maybe it’ll be some sort of disruptive product that will change the face of the entertainment distribution business yet again.
