Dish Network purchased Blockbuster in 2011 and was hoping that it could revive the once popular video rental business, but Dish announced today that it will be closing 300 Blockbuster stores shortly, leaving only 500 stores open in the United States.
The closing of 300 Blockbuster stores is due to lagging business for the video rental company and store leases expiring. Over 3,000 Blockbuster employees will be affected and let go in the downsizing move.
John Hall, a spokesman for Dish Network said:
"We continue to see value in the Blockbuster brand and we will continue to analyze store level profitability and -- as we have in the past -- close unprofitable stores. Some of the approximately 300 stores are reaching the end of their lease and others are closing based on overall performance."
An idea past its prime
The retail movie rental business for Blockbuster has taken a steep nosedive as the popularity of streaming videos continues to expand. Rather than going to a physical store to rent films, customers can stream videos in the convenience of their homes for less than the price of a physical movie rental from a store.
Michael Gartenberg, the director for Gartner Research, observed:
"Online services offer greater catalogs, no 'out of new release' signs and, of course, no membership or late fees. An entire generation will soon view physical media for entertainment as quaint as a landline rotary telephone."
Via ABC News