Dish Network folding Blockbuster retail and DVD business
Dish Network (Nasdaq: DISH) said Wednesday that it plans to fold all 300 of its remaining Blockbuster retail stores, and that it will also halt its DVD-by-mail service by early January.
The satellite TV provider, which bought Blockbuster for $228 million through a bankruptcy proceeding, said it will continue to use the Blockbuster brand to sell streaming movies to subscribers who use its Blockbuster @Home and Blockbuster On Demand products.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," Dish CEO Joseph Clayton said in a prepared statement. "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, which had already shuttered hundreds of Blockbuster retail stores, told analysts in August that it planned to close an additional 100 stores this fall. Blockbuster generated $121 million in revenue and an operating loss of $5 million in the second quarter, compared to $253 million in revenue and an operating loss of $13 million in the second quarter of 2012.
Dish is scheduled to report third-quarter earnings on Nov. 12.
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