The second biggest US satellite TV company Dish Network Corp. are said to be close to launching a streaming movie service using technology from their auquisition of Blockbuster.
Dish paid an estimated $320 million to buy most of Blockbuster’s assets in April after the company declared bankruptcy, and have since been looking at relaunching Blockbuster as a streaming service to rival Netflix, Hulu and even Amazon (who are favorites to buy Hulu).
Apparently the company could use an existing platform that delivers on-demand movies to subscribers, for launching this brand new offering.
The news comes from Bloomberg who say the service will begin in October. The launch is expected to hoover up disgruntled Netflix users still smarting from the just initiated price increase.
Speaking to Bloomberg, Ryan Vineyard analyst at RBC Capital Markets in New York said, “This ought to begin changing the way investors think about Dish. It goes from being an old-school pay-TV company to launching what could be a really high-growth business.”
Dish who are still in the running to buy Hulu, are not making any comments on the news. Stay tuned.
