Dish Network Slashes Blockbuster Prices

By Jessica Grabert 2011-05-27 15:34:04discussion comments
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Dish Network might actually prove to be capable competition for Netflix. The company recently pulled off a bid to get HBO and Cinemax programming to audiences via HBO Go and Max Go - coverage Netflix cannot supply. Now, Dish Network is pushing to get viewers back into video stores via slashed prices in its recently acquired chain, Blockbuster.

Exempting recent releases, beginning Friday available titles at Blockbuster will drop to 99 cents a day. Just-in releases will rent for $2.99 for one day and 99 cents for subsequent nights kept. Recent releases will cost $1.99 for the first night and 99 cents after. This is more convenient than the three-day $4.99 cost Blockbuster used to employ. However, even with a one-day rental, a Blockbuster title will still be less cheap than Family Video costs, Redbox, and sometimes Netflix (depending on how often the subscription is used).

According toTHR, this lower price maneuvering corresponds with Dish Network’s tradition of providing lower cost packages to consumers. This is true, but Blockbuster President Michael Kelly doesn’t shy away from the ultimate goal, directly pointing fingers by saying, "Our new pricing gives our customers the best of both worlds: access to the latest releases--many 28 days before Netflix and Redbox--and the most movies at low prices."

Touche.’ Still, the company has a long way to go before it figures out its niche in a market dominated by cost and convenience.
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