Blockbuster Will Close The Remaining 300 U.S. Retail Stores Along With Mail and DVD Operations
When the South Park episode spoofing the Blockbuster dilemma aired many thought, yeah, they’ll probably shut down soon, and that day has come. Blockbuster will close its 300 remaining U.S. stores by early January next year. Their DVD-by-mail business, just like Netflix, also will shut down by mid-December 2013.
USA Today reports:
“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” said Joseph Clayton, CEO of Dish Network, Blockbuster’s parent company. “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.”
In April of 2011, Blockbuster was bought out after emerging from Chapter 11 bankruptcy protection. Unfortunately for the company, their revenue fell to just $120 million in the second quarter, less than half the $253.3 million it generated the previous year. Simply put, they are just not making enough money.
Good news Blockbuster fans, their streaming and on-demand services will stick around for the time being.