Blockbuster now has a new owner and a new president, but apparently Hollywood studios will have a lot of say in some major decisions. According to new Blockbuster LLC president Michael Kelly, the number of current BB st0res that remain open will depend on studio faith in the brick-and-mortar model.
When discussing the fate of the 1,700 remaining Blockbuster locations, Kelly offered the following:
“We think there might be some synergies with the Dish business; it could make sense for us . . . We also think there still is business in the physical market. … We’ll have to see what the studious think . . . We’re not sure.”
Dish Network president Charlie Ergen concurs with his colleague;
“From my perspective, a lot depends on the studio presence . . . If that’s what they want, there are a lot of reasons to keep [the stores] open.”
Ergen also says that his company wants to make Blockbuster profitable again, but remains vague on the exact “when” and “‘how” of that aim:
“We bought the company for basically its liquidation value. Not a big risk in terms of total company. Not everything ends up being the fit you thought it would be. It’s upon us to develop those assets.”
What do you think, Insiders? Will Hollywood still have enough faith in the brick-and-mortar video rental model to continue to support Blockbuster? Can Dish get it together with its new purchase and turn Blockbuster back into a successful business?
(via Home Media Magazine)
If it was up to hollywood, that’s all that there would be…. and they would charge at least $10.00 per night. After all, a whole family can watch a movie for $10.00 – isn’t it worth at least that???? That’s a tremendous savings from taking a family of 4 to the movies. Of course, the contract would stipulate that the studio gets $8 of that $10.
A movie is worth $1.00 per night to me – and that’s about it. And if I can get half of the ones I rent for free (bogo or the random free codes I use, then a movie is only worth $0.50 per night). Go Redbox!!!!!!!
Ahh yes, lets give the studios more power over our movie watching experience. Good one Dish, way to sign a contract with the Devil.
How about Dish be on the consumers’ side for once? Oh wait, these are the same guys that sign you for $29/month and then raise your price a half dozen times over a year’s period. Hey Everyone, get dish network for $29 !! oh, plus $5 for this, $10 for that, $6 for this, $4 for that, yeah, your $29 dish is actually $130.
Makes complete sense that they would want to see how the studios think they should screw us. Its the perfect marriage.
I think you need to re-read the story.
Dish is NOT saying that the studios will decide which stores will remain opened, but that how the studios deal with DISH will decide if ANY of the stores remain open.
BIG DIFFERENCE.
Thats not true, the ceo states that they believe there is demand for physical product still, and if the studios want them to remain open, then they will. The studios will tell them to close all under-performing locations and dish will nod their heads and do as they are told. The studios have a lot of power with blockbuster, since they have such iron-clad revenue sharing contracts in place for each title.
It’s all about price. If DVDs need to be free to blockbuster for them to make money I guess one could say then that the studios choose to have the stores be closed.
Does BB breakout or itemize earnings?
I did not check its financial statements recently, but does its *mail-order* business come close to mirroring NetFlix’s percentages? All Insiders who use mail-order should hope that Dish keeps the BB mail-order business going. In other words, FAGETABOUT BB’s B&M retail business.