Streaming online videos and mail-order delivery of DVD rentals from Netflix and similar services recently pushed Blockbuster into Chapter 11 bankruptcy. No matter how Blockbuster tried to compete with Netflix, nothing was working.
The video rental company first opened its doors in 1985 and, while they dominated the market for decades, the advent of the Internet and streaming video threatened to destroy it. They tried marketing in various ways to compete with mail delivery DVD and streaming video services by allowing customers a choice to receive DVDs by mail or in-store and temporarily suspending late fees. In the end, nothing seemed to work. Blockbuster customers were leaving in droves and signing up for Netflix services. Blockbuster rental locations all over the country were shutting down. It looked like the end for Blockbuster, until dish network showed up.
In April, 2011, Dish Network absorbed Blockbuster in order to offer a superior service to its users and those who aren’t fully satisfied with Netflix. With Blockbuster @Home, the popular satellite TV company offers Internet streaming and DVD delivery services of over 100,000 titles.
Dish’s Blockbuster purchase means more for subscribers than the services offered by streaming video services like Netflix. While Netflix offers streaming movies, TV shows, documentaries, and more (in addition to home DVD delivery), DishNet subscribers can get a similar service as well as their TV service in a discount package bundle, offering a great value to their customers. This could mean steep competition for Netflix and an unexpected revitalization of Blockbuster's name and reputation.