Bye-bye Blockbuster: Dish Network said Wednesday it will close all of the video rental chain’s remaining U.S. stores, as well as its DVD-by-mail business by early next year.
Dish, which bought Blockbuster in 2011 for $320 million, attributed the move to more consumers switching to digital alternatives to rent or stream movies, while kiosk operators like Redbox also have played a considerable role in Blockbuster’s demise.
Dish also said it continues to stand behind the brand, which it sees as an opportunity to grow its VOD business among Dish’s more than 14 million satellite TV subscribers.
“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” said Joseph P. Clayton, Dish president and CEO. “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.” More..