Dish Network CEO Charlie Ergen has dismissed the long-held belief by analysts and even Netflix head honcho Reed Hastings that his company would be entering the competitive online streaming space.
"I don’t see us as a competitor to Netflix directly in streaming. They have a formidable and insurmountable lead in that," said Ergen during an earnings conference call according to Home Media Magazine.
Last week, Netflix's Reed Hastings said in his own company's earnings call that he anticipated a "substantial subscription streaming service" from Dish and Blockbuster at some point in the future.
Newly-appointed Blockbuster president Michael Kelly was also part of the call. Kelly helped address concerns regarding the final number of the 1,700 remaining Blockbuster stores that will remain open as the traditional retail model continues to decline.
Kelly ultimately sees movie studios as a key factor when it comes to just how dedicated to its roots the company will remain as the company leans more and more on its Blockbuster On Demand and Blockbuster Express services.
"We also think there still is business in the physical market. We’ll have to see what the studios think; we’re not sure," he admitted.
As for which stores will stay open and which will be closed, Kelly said the company was still "evaluating" their options. However, a report last month suggested only a few hundred would make the cut. And sure enough, the new president related in the call that less than 400 locations were profitable in April.
After Dish acquired Blockbuster for $320 million in April, some predicted a new streaming service would result. While Ergen's comments leave little wiggle room for a change of heart, it's clear the CEOs current concerns revolve around turning Blockbuster into a profitable business once more.
So far, so good says the Wall Street Journal: Dish shares surged 17% following the call. (Via Home Media Magazine)
