After filing for bankruptcy last year, Blockbuster has been able to be salvaged thanks to a buyout from Dish Network Corp. The main incentive for Dish Network was obvious, to offer retail stores that sells their products as well. Dish Network has been looking for ways to compete with other internet streaming services and movie subscription services. Having the rights to Blockbuster will allow Dish to do exactly that. Even better, the consumer benefits from the continued in-store services of Blockbuster with the added services that Dish plans to bring to the table.
Open For Business
After filing for bankruptcy last September many stores were closed, leaving many employees without a job or severance pay. This economy has not been polite to many and with the threat of so many large corporations in bankruptcy, consumers have become worried about the aftermath. Blockbuster president Michael Kelly was struggling early on to negotiate with lease providers to keep stores open. Kelly reported, “Unfortunately, despite our efforts to reach reasonable terms, some property owners have closed stores.”
Luckily, Dish Network Corp plans to keep around 1,500 stores open nationwide. Earlier estimates suggested Dish Network would close the majority of the 1,700 stores, leaving consumers pleasantly surprised after the announcement earlier today. Blockbuster employees can now rest easy knowing their jobs are most likely safe as ownership transition into the hands of Dish Network.