Its streaming service will launch in October in an attempt to nab people who are upset with Netflix's recent price hike, . Dish Network, which purchased most of Blockbuster's assets after the rental giant filed for bankruptcy in April, hasn't set a price yet, but may combine unlimited streaming with Blockbuster's existing mail-order and in-store DVD service.
In July, Netflix that it would split its DVD and streaming services into separate packages starting at $8 per month for each. This resulted in a $6 price increase for customers who wanted both. The price hike went into effect immediately for new subscribers and on September 1 for existing subscribers.
Last week, Netflix suffered another setback: that it would no longer license its movie for Netflix streaming. Those films accounted for roughly 8 percent of all Instant Watch activity.
Between rising prices and lost content, some Netflix subscribers are anxious for an alternative. But the reality is that . If you want to leave Netflix for something similar, your best bet is to couple Redbox or Blockbuster mail-order with Amazon's Prime Instant Video streaming. And even then, you'd have a smaller selection of streaming titles choose from.
Blockbuster could provide an alternative that combines streaming and DVDs in a single package, but don't get too excited yet. If this rumor pans out, there's no guarantee that Blockbuster's offering will be any cheaper than Netflix, and there's a good chance that Blockbuster will start with a smaller streaming library.
This could be a big test for Dish Network, which hasn't done much with the Blockbuster brand after earlier this year. A Blockbuster-branded streaming service would need lower prices, a bigger selection, or some other unique benefit to make the switch worthwhile.
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