Dish Network's interest in eventually taking on Netflix with its own online streaming service was arguably the industry's worst kept secret. New insider remarks, however, hint at a sooner-than-expected launch.
Speaking on the condition of anonymity to Bloomberg, a "person with direct knowledge of the plans" said Dish will leverage its $320 million acquisition of Blockbuster in a new movie streaming operation slated to arrive next month. The decision to begin in October, said the unidentified source, was a purposeful one - made to take advantage of the confluence of negativity aimed at the streaming giant.
On Thursday, Netflix implemented a price increase for long-time subscribers which increased the unlimited streaming and DVD rental option from $9.99 per month to $15.98 per month. The decision was ostensibly made to counter the company's growing bills.
A licensing contract with NBC Universal for several TV series will reportedly cost Netflix $300 million per year. Additionally, Netflix inked a non-exclusive deal with Miramax for a slew of its movies.
That same day, long-time ally Starz said it was finished negotiating a contract renewal with Netflix.
"When the agreement expires on February 28th, 2012, Starz will cease to distribute its content on the Netflix streaming platform," said Chris Albrecht, Starz President and CEO, in a statement released to the press. "With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."
It's uncertain if Starz will indeed get on board with a new Dish/Blockbuster streaming service, or exactly who is providing content.
No pricing details were divulged in the conversation, but it's safe to assume the new service will offer something unique to appeal to both new customers and Netflix members who might be reconsidering their options.
Speaking to investors in April, Netflix CEO Reed Hastings speculated that Dish was entertaining the concept of stepping up to compete. The company's Letter to Shareholders actually predicted "a substantial subscription streaming effort" from Dish was on the way.
"Presumably they paid a couple hundred million for Blockbuster not for its technology but for its brand," said Hastings.
Considering Blockbuster's previous attempts to exploit Netflix subscriber anger, a fall showdown between the two could prove more entertaining than anything either could stream. (via Bloomberg)
Are you interested in a new streaming service from Blockbuster, or satisfied with Netflix? Let us know in the comment section.
