|It's Curtains for Blockbuster Stores|
|By JOANNA STERN (@joannastern)||Nov 6, 2013, 1:04 PM|
The days of going to the video store to pick up a VHS or DVD and some popcorn or candy are a distant memory for many, but today Blockbuster announced the final nail in the coffin.
Dish Network Corp., which acquired Blockbuster in 2011, announced that it will be closing all of the remaining 300 Blockbuster retail stores in the U.S. by early-January 2014. In January of 2013, Blockbuster took the first steps in the process when it shut down 300 stores nationwide. The Blockbuster By Mail service will also be buried by mid-December, company officials said.
The cause of all of this? Streaming video, of course.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," Joseph P. Clayton, DISH president and CEO, said in a statement today.
Physical media has been replaced by Internet streaming services, including Netflix and Hulu, or cable video on-demand services.
However, Clayton said Blockbuster as a brand isn't dead and will live on in just the sort of digital business that has put the stores and DVD mail service out of business. "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," he said.
Currently, Blockbuster On Demand allows you to download or stream movies on an a la carte basis. There's no subscription offering as with Netflix or Hulu.