Know When to Fold Em
Saturday, January 14th, 2012It was in the cards. Keeping Blockbuster retail outlets open for video rentals is not a good business. The future, my boy, is “streaming.”
However, if you convert parts of the store into a Dish Network service center, you may have a really good proposition on your hands. Via Reuters…
“We are committed to keeping the profitable stores open that are generating positive cash flow, but there are ones that aren’t going to make it,” Clayton said in an interview. “We will close unprofitable stores. We will close additional stores.”
Clayton would not give a time frame on the closings or say how many stores were currently unprofitable. Spokesman Marc Lumpkin said the closings will be on a “case by case” basis.
Clayton, who became CEO of Dish last year when billionaire Charlie Ergen stepped down to focus on Dish’s wireless strategy as chairman, said the stores that stay open will sell Dish subscriptions and may one day provide customer support for its television customers.
“If a consumer has a problem, just bring your box in and we’ll give you a new one so you don’t have to stay at home and wait for an installation,” he said.
Subscribers to Dish’s Latino service may also be able to pay their TV bills in stores in metropolitan markets, he added.
Dish has tried to tap the Blockbuster brand by unveiling a new Internet streaming service and a program to rent DVDs by mail, in a bid to challenge Netflix Inc.
If they buy Hulu and add wireless spectrum to serve their streaming business, Dish Network can be very well positioned in remaining a good business model.