Dish Network Corp. is reportedly pulling the shutter on the 300 remaining stores of its subsidiary home entertainment giant, Blockbuster LLC. It announced in an official statement Wednesday that the outlets will be shut-down by January 2014.
Blockbuster LLC was once a very popular home entertainment service provider that offered movies DVDs and games for rent. However, after Netflix- the online-content streaming website- came into the scenario, demand for CDs and DVDs plummeted. Facing stiff competition from digital distributors and falling demand, Blockbuster filed for bankruptcy in 2010.
Blockbuster was acquired by Dish in 2011. The network had then said that it would operate 90 percent of all the stores while closing down the 10 percent. However, gradually, it has been shutting down outlets over the years. The 300 functional stores will also shut down by January. However, franchisee stores and licensed outlets will remain open.
Moreover, Dish does not plan on erasing the brand name off the market completely. It said that it will use Blockbuster's brand name and provide Blockbuster on Demand, the digital movie rental portal and Blockbuster @ Home, a TV service that provides more than 15 channels.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment. Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings," Joseph P. Clayton, DISH president and chief executive officer said in a press statement.
The exact locations of the remaining stores have not been disclosed. However, Quartz has compiled a list of stores that operate in the country. According to the report, Texas has the highest number of stores with 61 outlets and Florida followed in with 29 shops.
The stores will keep serving customers until closure. The DVD-by mail service will cease by mid-December, reports The Press Democrat. The closure will result in 2800 job losses.
Although the closure will hardly have any impact on Dish Network's business, some are sad that an era is coming to an end.
"I think it's a shame, really," Susie Morris, a 48 year old woman, who rented movies from a local Blockbuster store frequently, told The Las Vegas Guardian Express.
However, others are more open to the fact and have moved on saying it is easier to stream movies and shows online or download them from torrents.
