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Netflix Crushes an Old Foe

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

According to a Bloomberg article, DISH Network is giving up on its plans to turn Blockbuster into a Netflix killer. DISH had planned to use the stores to sell mobile devices that would stream content. But delays in approval for the spectrum have put a damper on those plans. So DISH plans to start closing stores. Without the mobile devices, DISH would have to take on Netflix directly, something it doesn’t want to do. That leaves competitors like Hulu, the Coinstar/Verizon partnership,, and others to duke it out. Netflix still has plenty of challenges ahead of it, such as a declining DVD-rental business, growing domestic streaming subscribers, and building its international segments. But one less competitor makes things a bit easier, and Netflix a little more attractive.


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David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.

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  • Report this Comment On October 12, 2012, at 8:00 AM, trysson wrote:

    It appears that DISH is in for hard times even though it will be able to unload some brick & mortar. I have no position in any stock listed in this article except VZ.

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