News Analysis
New Blockbuster Won't Hurt Netflix - Yet
By Swanni

Washington, D.C. (September 23, 2011) -- That sound you just heard was a sigh of relief from Netflix headquarters.

Dish Network and Blockbuster unveiled its new streaming/DVD plan today and, despite promises otherwise, it will not threaten Netflix's dominance in the home video field. The plan includes a strong offering of streaming movies and DVD/Blu-ray options, but it requires a subscription to Dish Network.

In my view, until Dish separates Blockbuster's 'Stream Come True' from the satellite service, few consumers will consider leaving Netflix for the new venture.

Asked whether Dish will let Blockbuster's new plan eventually stand alone, company officials were a bit vague today at a press conference. They said it will likely happen sometime but wouldn't give a date. They said later that details for non-Dish subscriptions would be revealed "shortly." However, they added that they believe that consumers would prefer a bundled plan.

The new 'Blockbuster Movie Pass' will launch on October 1, company officials said. Dish subscribers can sign up for the new package for an additional $10 a month. New Dish customers who sign up for Dish's America Top 200 package for $39.99 will get the Blockbuster service for free for a year.

The Blockbuster Movie Pass will include Blu-ray discs at no extra charge, unlike Netflix which requires an additional $2 a month to rent the high-def titles.

Dish CEO Joe Clayton said the Blockbuster Movie Pass will offer 100,000 movies and TV shows by mail and more than 3,000 streaming movies that can be accessed on your TV. The service will also include more than 3,000 video games for rent via the mail.

To watch today's Dish Network/Blockbuster press conference, click Here.