Blockbuster to Shutter U.S. Stores and DVD by Mail Services

DISH Network announced that its Blockbuster subsidiary will close approximately 300 remaining U.S.-based retail stores and its DVD by mail distribution operations by January 2014. The Blockbuster By Mail service will end mid-December. Blockbuster has recently divested itself of U.S. and international assets, including operations in the UK and Scandinavia. However, DISH plans to continue its support of Blockbuster’s domestic and international franchise operations.

“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 chief executive officer. “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.”

“DISH will retain licensing rights to the Blockbuster brand, and key assets, including the company’s significant video library,” explains the press release. “DISH will focus on delivering the Blockbuster@Home service to DISH customers, and on its transactional streaming service for the general market, Blockbuster On Demand.”

“The Blockbuster @Home service offers over 15 movie channels including STARZ Cinema, EPIX, Sony Movie Channel, and Hallmark Movie Channel, plus over 20,000 movies and TV shows streamed to TVs, computers or iPads. The service includes access to the Blockbuster @Home ‘app’ currently available to the millions of TVs served by DISH’s Hopper Whole-Home HD DVR set-top box.”