Friday, September 23, 2011

Blockbuster Movie Pass Illustrates Streaming Business Model

For those of you wondering about the business model for streaming video services, the launch of Dish Network's new Blockbuster Movie Pass suggests one important fact. The actual revenue model for an online streaming service might be another business with a significant revenue stream. In the case of Dish Network, the business model is subscribers to linear video services.

As with the case of "TV Everywhere" services offered by cable subscribers, the revenue model actually is that the service provider attracts and keeps customers for a linear video service.

The Blockbuster streaming content adds Starz, Epix, Sony Movie Channel, and Encore to Dish’s on demand library that includes Fox, TBS, TNT, Discovery, AMC, CN, DIY, HGTV, FOOD and History. The combined content can be streamed only from DishNetwork.com. Blockbuster also will integrate DVD by mail offers as well.

The service launches next Saturday, October 1,2011, and is available for $10 a month only for Dish Network subscribers.

This service requires a Dish Network satellite TV package and is not available separately, in other words. New subscribers who buy Dish’s "Top 200" programming package for $39.99 a month will get Blockbuster Movie Pass for free for one year.

The Blockbuster service will be billed with the Dish Network TV service, on one bill.

1 comment:

Anonymous said...

I agree that to sustain a streaming service, a company must have alternate sources of revenue, content is very lucrative and expensive. That’s why I was so excited by this announcement. DISH Network and Blockbuster are shaping up to be a great team. Both companies have years of experience in working with TV and movie studios in negotiating for content. Starz is one such example where DISH was able to procure content where other companies could not. As a DISH Network subscriber and employee I already knew the value of DISH HD service along with their TV Everywhere service on my phone. Blockbuster Movie Pass gives me access to thousands of TV shows and Movies streaming to my computer and TV. Thousands of DVDs, Blu-rays and video games can also be rented by mail. I went here and signed up for more information as soon as I heard the announcement. I know it will help me save time and money because I won’t need Netflix/Qwickster or Gamefly. That’s 3 bills and 3 queues to manage. The Blockbuster Movie Pass is just $10 per month and I get to keep the games and movies as long as I want. There are no late fees or due dates!

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