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  #31  
Unread November 29th, 2012, 05:11 PM
SpiceCake SpiceCake is offline
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Quote:
Originally Posted by BBStoreMgr112233 View Post
You just don't get it. For Dish, it has never been about how we can save Blockbuster and it never will be. The purpose of the whole deal is how can they offer more value to their Dish customer and how can they provide an even better product to their consumer which will help them increase growth and profits.

Charlie has a very successful company that makes billions but he isn't satisfied. He is looking for ways to continue to grow and develop his business and wants it to be at the forefront of the industry.

In many ways, that has already been accomplished with the acquistion of Blockbuster. What other sat/cable company offers what they do in regards to an easy to add on service that provides additional choices for the consumer in regards to movies and TV shows? They could close the stores tomorrow, or a year from now, and the purchase of Blockbuster would still be a win for them.

If that was Charlie's only goal, it would have made the Blockbuster purchase a truly successful one. However, he was thinking even bigger than that. He had long ago envisioned offering a mobile service and the acquisition of Blockbuster actually was killing possibly two birds with one stone. Not only do they capture additional content they can offer their exisiting customer base but potentially they could have a turn-key operation in place for their entry into the wireless business.

The mobile concept isn't even anywhere close to dead. The FCC hasn't ruled, suggested, or even proposed to stop Dish from entering the business. They have only proposed to place certain limits on the spectrum that Dish owns, which in turns, limits the options Dish will have.

I have read articles that state all spectrum has similar regulations and limits placed on it so that it does not interfere with other bands of spectrum. The question asked was why should Dish be any different? And the limits are being suggested to protect the value of additional spectrum the government owns so that they can maximize its value as they prepare to auction it off.

Who is to say that Dish won't be a major bidder in this additional spectrum? But really, the spectrum is somewhat a mute issue since Dish has openly stated they are not really interested in building out their own network (which would cost billions), but are more interested in partnering with someone already in the business. If Dish does in fact partner with someone, the spectrum they own is simply an additional asset, along with their millions of customers, that they bring to the negotiating table to make a deal happen and the limitations the FCC places on that spectrum only slightly diminishes the value Dish can offer that potential partner.

It is my opinion that Dish will enter the mobile business one way or another. They are basically stuck in an industry (TV service provider) that has little room if any for growth. They know they must find other ways to grow their business and becoming the first company to be able to offer TV, internet, and mobile phone in a bundled package would do just that.

Dish will either buy a smaller mobile service, partner with a medium size service, or partner with a company who like Dish, is looking to get into the mobile business and with whom they could share the expense of building their own network (like Google or even Direct TV). I just see too many options out there for this not to happen. The FCC ruling will only change the landscape, not the end game for Dish.

Lastly, Dish investors don't seem to be overly concerned. Dish shares were up over 3% today and trading just a mere 90 cents under their 52 week high. Certainly if the investment world shared your opinions, the stock would be in a downward spiral.
Oh, I agree with you 100% that Dish is intent on expanding into the mobile industry on a long-term basis. The only questions and uncertainties I raised were over the long-term viability of the Blockbuster stores' place in those plans. I have also read articles stating that Dish is interested in teaming up with a company like Google to start a mobile service, and I imagine a partnership of that sort is what they'll focus on creating if the FCC rules in the manner it looks like they'll rule in December.

Remember that Ergen stated this week that, if the FCC implements their proposed limits on the amount of wireless spectrum Dish is allowed to use, it will mean that the process of starting a mobile service will take "years" (in his words) to get off the ground. Even if they're willing to spend years and years establishing a presence in the mobile industry, are they going to be willing to spend years and years losing money every quarter through operating Blockbuster stores? Or will they, at some point, realize that it would be just as cheap and effective to just close the stores and negotiate totally new leases in 3-5 years when they're actually ready to utilize a brick-and-mortar presence?
  #32  
Unread November 29th, 2012, 10:59 PM
BBStoreMgr112233 BBStoreMgr112233 is offline
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Originally Posted by SpiceCake View Post
Oh, I agree with you 100% that Dish is intent on expanding into the mobile industry on a long-term basis. The only questions and uncertainties I raised were over the long-term viability of the Blockbuster stores' place in those plans. I have also read articles stating that Dish is interested in teaming up with a company like Google to start a mobile service, and I imagine a partnership of that sort is what they'll focus on creating if the FCC rules in the manner it looks like they'll rule in December.

Remember that Ergen stated this week that, if the FCC implements their proposed limits on the amount of wireless spectrum Dish is allowed to use, it will mean that the process of starting a mobile service will take "years" (in his words) to get off the ground. Even if they're willing to spend years and years establishing a presence in the mobile industry, are they going to be willing to spend years and years losing money every quarter through operating Blockbuster stores? Or will they, at some point, realize that it would be just as cheap and effective to just close the stores and negotiate totally new leases in 3-5 years when they're actually ready to utilize a brick-and-mortar presence?
Just don't discount "posturing". Charlie is a former poker pro. He knows the art of the bluff very well. Don't discount the fact that he just might be smart enough to say some things in the press to try and persuade a more generous ruling.

I am sure you can find a quote or two from Charlie saying they would never carry AMC again unless they could agree on terms to carry only the channels that Dish customers wanted (basically just AMC) and they would not be forced into a package deal making them carry the less desired channels. Not only did they pick back up all of AMC's channels but they now offer Fuse. Fuse's executive chairman just happens to be the son of the chairman of both AMC and Cablevision. Ironic huh?!

There is a lot we all don't know. Not everything is public, even in a publicly traded company. Does the $10/month revenue for Blockbuster @ Home factor in to Dish's income or Blockbuster's? I know it is paid directly to Dish but does accounting reflect that as Blockbuster income? If not, that could virtually wash out Blockbuster's reported losses.

Does Dish pay Blockbuster for the Dish subscribers created in store the same as they pay all other retailers of Dish? Are the expenses of in store marketing, equipment and other Dish related tools billed as an expense to Dish or Blockbuster?

Don't get me wrong. The stores are still in dire straits. They desperately need another source of signifcant revenue to be a viable long term business.

The bottom line is this. We can all be like Kaw who just keeps predicting the same thing day after day, year after year, decade after decade until we are actually right and then say I told you so (which still hasn't completely happend for him), or we can wait and see. I just poke my head in now and then to point out the other sides. The truth is we really don't know whether Blockbuster stores will be around a year from now or if they will still be going strong in some capacity 10 years from now.

The only thing I can safely say is that Charlie Egren is an incredibly smart business man. If and when the time comes he feels he has no use for the Blockbuster brick and mortar stores, he will cut them loose.
  #33  
Unread November 30th, 2012, 10:15 AM
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Originally Posted by Hot Head View Post
Bbstoremaneger its called greed.
No, it's called competition, and capitalism....which could be the same as greed....
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  #34  
Unread November 30th, 2012, 04:06 PM
KAWLIGA KAWLIGA is offline
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Yup there going to be selling cell phones its going to happen no matter what lol
and a few months later....PICKLES!
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  #35  
Unread December 1st, 2012, 10:24 AM
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I just thought of something funny Enron had a poker face look what happened to thrm
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