After the Blockbuster buyout by Dish Network, many were wondering why they wanted the failed DVD by mail company. It seems that the answer is the streaming side of the business, the web streaming licensing deals and the 20 million plus Netflix subscribers.

When Dish paid $320 million for the bankrupt Blockbuster, they were looking at the successful Netflix who had outmanouvered Blockbuster by  switching from DVD rental to online streaming of movies and shows.

Add to the mix the news that Dish are teaming up with HBO to stream from a catalog of 1,800 plus movies and TV shows on their streaming service.Dish chief Bruce Eisen said:- “We plan to compete more aggressively with Netflix.”

He also said that Netflix have “more movies than we do, but we have movies much sooner,” adding that many films will not be streamed by Netflix for 10 years.

One of the benefits of Blockbuster is the licensing deals they have with major content providers such as Lionsgate, 20th Century Fox, MGM, Sony Pictures and Universal. Giving the streaming rights to a range of hardware devices. In fact some say that may have been the main reason for the buyout

When you look at the number of content deals Netflix are securing, and the amount of money they are spending, you can see the rationality. Although Netflix have 20 something million subscribers, that still leaves millions of potential subscribers which Dish are looking to reel in.

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