Deal points - Broadcasting & Cable

Deal points

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What DirecTV does for Blockbuster:

  • If projections prove true, revenue from the DirecTV alliance will increase Blockbuster's earnings from 5% to 15% within a year, adding from $25 million to $77 million..
  • Blockbuster expects to get 6 million of its 40 million customers to convert to DBS within the next five years; The video retailer will get a percentage of pay-per-view and montly subscriber fees from DirecTV.

What Blockbuster does for DirecTV:

  • Within two years Blockbuster partnership will help DirecTV double its pay-per-view revenue, now estimated at nearly $300 million a year.
  • DirecTV will be able to add titles to its PPV service, giving it a competitive and marketing advantage, and add 5,000 video stores where the DBS provider will sell its wares.

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