• by David Goetzl  @dgoetzl, May 19, 2011

After acquiring Blockbuster for $320 million, out of bankruptcy court, Dish Network is using the new asset as a marketing tool.

The satellite operator, which battles DirecTV and others for subscribers with a barrage of TV ads, will offer new subscribers three months of Blockbuster's DVD-by-mail service for free.

Subscribers must sign on by Aug. 10. The Blockbuster service includes more than 100,000 movies. The company says it has new titles 28 days before Netflix and Redbox.

Customers can exchange the DVDs at Blockbuster stores, an option the dominant Netflix doesn't offer. The company also has vending kiosks similar to Redbox.

Dish had more than 14 million customers at the end of March and took control of Blockbuster in early April.

At the time of the acquisition, Dish executive vice president Tom Cullen stated: "With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities ... "