Blockbuster Overview Analysis

Topics: Blockbuster Inc., Circuit City, Carl Icahn Pages: 4 (1512 words) Published: September 15, 2013
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Company Overview
Blockbuster Video is a subsidiary of DISH Network
With video stores going the way of the dinosaurs (and record stores), movie rental chain Blockbuster has seen its business take a Hollywood-sized hit. With a library of more than 125,000 movie and game titles, Blockbuster has struggled to transform its store-based distribution system to a multi-channel content delivery model. The company's customers can either download movies to their home or mobile devices, order them by mail, or visit one of a dwindling number of Blockbuster stores. Amid rapid technological change and competition from Netflix and Redbox, Blockbuster filed for Chapter 11 bankruptcy protection in 2010 and was sold to satellite TV service provider DISH Network in 2011. After a drawn-out auction, DISH Network was declared the winner with its $320 million bid in March. (It beat out several other contenders, including SK Telecom of South Korea, a group of Blockbuster lenders led by Monarch Alternative Capital, and a team of liquidators headed up by billionaire investor Carl Icahn.) DISH said its offerings are complemented by Blockbuster's retail network and remarked that cross-marketing and service-extension opportunities will be key to its plan for Blockbuster. As such, DISH agreed to take over the leases of more than 500 Blockbuster stores. (At the time of the sale Blockbuster has 1,700 stores, after closing some 1,500 while in bankruptcy.) Market analysts have said some possibilities could include DISH service subscriptions sold through Blockbuster stores or expansion of DISH's existing offerings with Blockbuster's online streaming agreements. DISH has said it plans to continue to operate more than 1,500 US Blockbuster stores. DISH has appointed Michael Kelly as president of its new subsidiary. Kelly, formerly the EVP of DISH's Commercial Services division, has taken over the day-to-day operations of...
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