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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