Last year Blockbuster filed for Bankruptcy Protection, which worried many people that all of the Blockbuster stores would be closing and cause a shortage of video's. Blockbuster has 2,400 stores around the United States and are planning to shut down 700 of those stores, including all the operations in Argentina. Luckily for DISH network the more popular ones stayed along with the DVD vending kiosks and the DVD mailing and digital download business. DISH network bought Blockbuster with a winning bid of $320million. DISH network bought Blockbuster because they want to enhance its video-on-demand services. With DISH network buying Blockbuster I believe that they will ultimately have a higher profit than before. By enhancing the video, creating a new chain of stores, and with the brand name of Blockbuster and Blockbuster's relationships with content provider's, will help DISH network switch from a linear provider of scheduled broadcast into a provider of on-demand content. DISH networks switch to on-demand content from their usual scheduled broadcast will cause DISH network to have an increase in demand for their products. Therefore, DISH network will benefit by having a greater profit than before from having the winning bid on Blockbuster.
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