Rumor: Dish Network to launch Netflix-like service

The Netflix streaming video service has been highly popular in part because, at least until recently, the company hasn't experienced much competition. That's starting to change with efforts like Hulu Plus, Amazon's streaming video service and more recently HBO GO entering the market. Now Bloomberg reports that yet another big rival to Netflix could launch as soon as October. The story, which cites unnamed sources, claims that the new service will be launched by Dish Network and its recently acquired subsidiary Blockbuster Video.

Blockbuster's rental stores have battled and lost against Netflix before. Netflix's mail order DVD rental business gradually ate into Blockbuster's revenue over the years. Ultimately Blockbuster was not able to compete and the company went into bankruptcy. It finally sold off its assets to Dish Network back in April for $320 million. This new report now claims that Dish Network will offer up some kind of subscription streaming video service under the Blockbuster label. Details are still scarce; for one thing, there's no word on the pricing for this new operation. Dish Network has not yet commented on the report.

This new rumor comes as Netflix is still dealing with the backlash of bad news on two different fronts. One is the new 60 percent higher monthly price for its customers that choose to pay for both its streaming video service and at least one DVD mail order rental. The other is that the cable TV channel Starz announced this week it would not renew its content streaming deal with Netflix. In trading today, Netflix's stock price fell over 8.6 percent.

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