Home > Business > Dish Network buys Blockbuster

Dish Network buys Blockbuster

The headline:  Dish wins Blockbuster auction for $320 million

The link:  http://finance.yahoo.com/news/Dish-Network-wins-Blockbuster-rb-836945958.html

The summary:  Dish Network outbid at least three other bidders to purchase Blockbuster.

The reaction:  With this purchase, the painful descent for Blockbuster is complete.  Once at the top of the food chain in the DVD and video game rental space, Blockbuster failed to adjust their business model for companies like Netflix and Redbox.  Netflix challenged Blockbuster by offering a “no late fee, keep it as long as you want” service and later helped pioneer the move from DVDs to streaming video.  Redbox undercut Blockbuster by offering overnight rentals for just $1.  When Blockbuster continued charging $4 per rental and frustrating customers with late fees, they started losing market share and the rest is history.

I’m sad to see it end like this for Blockbuster as I generally enjoyed their stores and service but theirs is a prime example of why your business model needs to stay fluid.  Blockbuster’s didn’t and it ends with them getting auctioned off to the highest bidder.  Sad story!

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