Over the last several months, Dish has been on a spending spree, gobbling up billions of dollars worth of wireless spectrum and acquiring bankrupt video store chain Blockbuster in a deal valued at $320 million.
On the surface, the moves seem unrelated, but Dish says it has a grand plan that includes launching a subscription streaming service to compete with Netflix and getting into the wireless communications business.
Primarily a satellite broadcaster with 14.2 million subscribers (which makes it the third-largest multichannel video program distributor behind Comcast and DirecTV), its co-founder and chairman, Charlie Ergen, has expressed doubts about the long-term prospects for that business.
Ergen said, "The world is changing" and Dish has to "figure out how we can do things differently and how we can compete."
Still, some Wall Street analysts worry that the company may be biting off more than it can chew with its recent spending spree.
LAMediaWatch.com
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