Last week, DISH Network (NASDAQ:DISH) released a PR
which I find quite exciting. Here is the press release in its entirety:
DISH Network’s DISHOnline.com delivers HBO® and Cinemax® titles not available on Netflix’s online service
ENGLEWOOD, Colo., April 21, 2011 /PRNewswire/ — DISH Network L.L.C. today announced that DISHOnline.com now gives customers instant, unlimited access to HBO and Cinemax titles not offered by Netflix’s online service. In connection with Home Box Office, Inc.’s new online video destinations, HBO GO® and MAX GO®, DISH Network customers who subscribe to HBO or Cinemax premium channels can now instantly watch nearly all of the respective current HBO or Cinemax programming inventory – most of which is available in high definition – at DISHOnline.com. Customers have access to more than 1,800 titles including Hollywood hits such as Avatar, The Hangover and Up in the Air, original content like award-winning series Boardwalk Empire® and True Blood®, as well as independent films, cult favorites and more.
“DISH Network is thrilled to be working with HBO to bring this broad collection of top-billed content to our customers for instant access at DISHOnline.com,” said Dave Shull, senior vice president of Programming for DISH Network. “DISH Network customers with an HBO or Cinemax subscription can also get new series titles after their premiere – plus bonus content including interviews, recaps and behind-the-scenes extras – none of which are available through Netflix’s online service.”
DISH Network customers who subscribe to the HBO or Cinemax TV packages can enjoy the respective online content any time and from any U.S. location with a broadband connection by simply logging on to DISHOnline.com, HBOGO.com or MAXGO.com.
DISH Network’s DISHOnline.com is the only online video portal that gives customers the ability to integrate live and recorded TV with more than 150,000 popular movies, TV shows, clips and trailers into one easy-to-use-interface. For more information or to create an account, visit www.DISHOnline.com
This PR in and of itself is very good, but couple it with the recent winning bid for Blockbuster Video by DISH and I would say a certain other online movie service is in for a major battle; are you paying attention Netflix (NSADAQ: NFLX) ? Perhaps due to waiting for final approval from the bankruptcy court and satisfaction of certain conditions related to the bankruptcy, DISH network has been relatively quiet about the winning auction bid for Blockbuster. In the April 21 filing with U.S. Bankruptcy Court in New York, lawyers for DISH said they needed more time to determine which of the 1,700 Blockbuster stores would remain in operation.
DISH has until May 5 to close the deal, which was previously extended to April 25. Blockbuster has agreed to waive a $500,000 daily fee that was to have been previously assessed to the sale when extended beyond the closing date. DISH has agreed to assume costs associated with continued store based operations, including employee costs and vacations. U.S. Bankruptcy Judge Burton Lifland is due to rule this week on granting Dish 90 additional days (to July 21) to assume or reject current store leases. In court filings, Dish listed about 575 stores it intends to keep operating.
However, this media powerhouse would appear to be a very formidable foe for NFLX and seems poised to beat NFLX at its own game and with considerably more available media and choices for the consumer. The video entertainment customer base will likely now have some exploring to do and choices to make once Charlie Ergen has that final approval of the sale in his hands. Make no mistake, Mr. Ergen is going to make sure that his Blockbuster purchase wields a significant profit and helps continue to accumulate significant market share for his media empire. The combination of DISH and Blockbuster seems a very formidable opponent for Netflix or any other video or cable entity to try and fend off. Investors should pay attention to DISH news and filings in the coming weeks. The quarterly conference call for DISH is scheduled for May 2nd at noon. The dial in number is (800) 616-6729. Additional information can be found here;
http://dish.client.shareholder.com/releases.cfm
Disclosure: No position in DISH, BLOAQ or NFLX currently