About 300 brick-and-mortar locations left in the US will be closed by early January, as well as its distribution centers. Blockbuster’s DVD-by-mail service is also shutting down in mid-December. However, DISH says it will continue to support Blockbuster’s domestic and international franchise operations (some 50 stores), relationships and agreements.
About 2,800 people who work in Blockbuster’s stores and DVD distribution centers will lose their jobs, according to an AP article.
“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” said Joseph Clayton, DISH 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.”
DISH will then focus on delivering the Blockbuster @Home service to DISH customers, and on its transactional streaming service for the general market, Blockbuster On Demand.