Saturday, July 24, 2021
80.3 F
Fort Worth

No more late fees: Blockbuster closing locations

🕐 2 min read

 

MICHAEL LIEDTKE, AP Technology Writer

SAN FRANCISCO (AP) — The final curtain is falling on about 300 Blockbuster locations scattered around the United States, meaning the once dominant video-rental store chain will have just 50 franchised stores remaining open in the U.S.

The remaining Blockbuster video-rental stores that Dish Network Corp. runs in the U.S. will be closed by early January. As part of Dish Network’s retreat, Blockbuster’s DVD-by-mail service is also shutting down next month.

The cost-cutting measures culminate a Blockbuster downfall that began a decade ago with the rise of Netflix’s DVD-by-mail service, followed by the introduction of a subscription service that streams video over high-speed Internet connections.

The chain’s near extinction serves as another stark reminder of how quickly technology can reshape industries. Just a decade ago, Blockbuster reigned as one of America’s most ubiquitous retailers with 9,100 stores in the U.S.

Blockbuster also operates in other countries like the United Kingdom, Australia, Brazil and Mexico.

About 2,800 people who work in Blockbuster’s stores and DVD distribution centers will lose their jobs, according to Dish Network.

“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” Dish Network CEO Joseph Clayton said in a statement Wednesday.

The shift has been a boon for Netflix Inc., which now boasts 31 million subscribers to its Internet video service and another 7.1 million DVD-by-mail customers. The company’s success has minted Netflix with a market value of $20 billion.

But Blockbuster absorbed huge losses. It closed thousands of its stores before landing in bankruptcy court three years ago. Dish Network bought Blockbuster’s remnants for about $234 million in 2011 and then tried to mount a challenge to Netflix.

But the Colorado satellite-TV provider couldn’t wring a profit from Blockbuster either, prompting even more store closures.

Dish Network is trying to keep the Blockbuster brand alive through an Internet video-streaming service that rents movies and TV shows by title, for a set viewing time.

Blockbuster suffered an operating loss of $35 million on revenue of $1.1 billion last year and posted an operating loss of $4 million during the first half of this year, according to regulatory filings.  

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

Related Articles

Our Digital Sponsors

Latest Articles

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate