[Satellite TODAY 09-26-11] Dish Network is set to launch Blockbuster Movie Pass, an on-demand video streaming service to compete with rival Netflix, the company confirmed Sept. 23.

   The service will provide more than 100,000 DVD movies, TV shows and games available by mail. Dish Network said that it will charge no additional fee for high definition Blu-ray movies and will release service packages in one, two or three disc plans.

   The launch follows Dish Network’s $320 million acquisition of Blockbuster in April during a bankruptcy auction. After the acquisition was complete, Dish Network CEO Joe Clayton told investors during a conference call that he wanted to compete with Netflix’s stronghold on the streaming video market.

   “It will likely be more competition for Netflix than for cable in general,” LRG Market Research Analyst Bruce Leichtman said in a research note. “The big question is how much premium content, including movies, Dish Network’s Blockbuster service will offer compared to Netflix and others. Given Dish’s 14 million subscribers and the likely desire by movie studios not to see Blockbuster disappear, Dish has tremendous leverage to secure content on attractive terms.”

   Dish Network has been reported to be among the bidders for another online video streaming service, Hulu, which is being auctioned by owners News Corp., Disney, NBC Universal and Providence Equity Partners.