Bloomberg reports that Dish Networks is working on a streaming subscription service that might include the Starz content (and would explain why they walked away from the negotiating table with Netflix).
The new service may also include on-demand Blockbuster movies that Dish satellite customers can watch on television sets, the person said. Blockbuster may offer the streaming service in conjunction with its mail-order and in-store DVD rentals.
Dish has been negotiating rights with studios since it acquired Blockbuster, which already had certain contracts in place coming out of bankruptcy. Discussions with studios typically include authentication and online rights as well as other programming rights.
While Blockbuster.com offers on-demand movies for one-time purchase, this would be its first subscription-based streaming service. The new option would complement Blockbuster On Demand, which allows users to watch content on personal computers, mobile devices and DVRs.
The offering is expected to include movies from Starz LLC, said the person. Starz announced yesterday it had halted negotiations with Netflix to renew an online-viewing deal for next year.
Thanks to FearNo1 and Goober22 for sending this in.