Blockbuster Retail Operations Shutting Down Jan. 2014

Video and video game rental giant Blockbuster is not going to exist by the end of January 2014. Parent company Dish Network announced today that it will shut down its retail and by-mail rental distribution operations by early January 2014. The 300 remaining retail stores in the United States and distribution centers will also be closed.

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

Dish does go on to say that the Blockbuster brand will live on through expanded digital offerings. Dish will retain licensing rights to the Blockbuster brand, which includes key assets like the company's "significant video library." Dish also plans to continue offering the Blockbuster @Home service to subscribers, and the Blockbuster On Demand program will live on indefinitely.

On a related note, Joystiq reports that Microsoft and Sony will honor pre-orders made through Blockbuster UK for their respective next-gen consoles..

Source: GameSpot

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  1. 0
    E. Zachary Knight says:

    One thing that a family store might have over Redbox is a great selection of less than new movies. Red Box is dominated by the most recent movies to have come out. A b&m store could have a far greater selection of movies and games to rent from. As long as they are better than Blockbuster on the customer service part, they could do fairly well.

    Not sure if I would make rentals the only source of income though. You would have to do something else along side it to make it fully profitable.

    E. Zachary Knight
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  2. 0
    Neo_DrKefka says:

    This could happen.

    With Redbox though this would make this hard to do. Back in 1992 I remember being able to rent a movie for two dollars. I feel mom and pop stores can make a comeback with tax incentives but I do not think we should simply make tax incentives the only way a business can thrive.

    Communities and families should think local and come together to think of ways to improve the community that surround them and come up with a sound business plain to help themselves and the community. Think local I say!

    Blockbuster unlike Redbox has a horrible reputation for poor customer service and scams that hurt consumer confidence. Redbox (Which has its Call Center here in Illinois) excels in customer service and satisfaction and would rather lose money to save a customer. So if you have a Redbox near you it would be hard to compete when they are known to excel in customer satisfaction. You never know there might be a committed family out there who might have an idea to capitalize off of the death of Blockbuster.

  3. 0
    PacManFanatic says:

    I literally last month tried to find a rental store. Don't ask why. The point is it had been about 5 years since I last looked. Guess what? Nothing. Notta. All shut down! It's amazing the demise. I didn't see it, but I guess it was gradual. They milked us, now it's over. Blockbuster milked us with late fees and the works. Still, I have some great memories renting movies there. It was exciting. Now I don't have to leave the house, pretty much EVER!

  4. 0
    Neeneko says:

    If I recall correctly, they declared bankruptcy and were bought out.  They were actually turning a profit again for a while so I am not quite sure what happened this time.

  5. 0
    hellfire7885 says:

    This could enable a resurgence of such stores. In a plaza near my home there's a small independent video store that still operates. In fact I think I've been steadily seeing more.

  6. 0
    Neo_DrKefka says:

    Before the people who were born in the 90s complain on how this will kill jobs. Blockbuster forced out tons and tons of Mom and Pop stores everywhere who were told they could buy certain movies because Blockbuster had the exclusiverights or Blockbuster had a larger selection.

    Growing up on the South West Side of Chicago I seen the tons of family owned movie stores slowly die out until only two Blockbuster stores replaced 20+ mom and pop movie stores which they hired their own people as well.

    To make it worse Blockbuster over the years tried to raise the rental price of a movie to I remember a high of six bucks to video games a high of 8 bucks in which at that point when video games were 39.99 because PS1 was the console of choice back in 1998 and high-priced N64 games were out it was pointless to rent a video game since you already are putting on a huge down payment.


    Then there was that whole 'No more late fees" which was a lie since after a certain point you end up buying the game or still getting a late fee after a week.

    Overall the time to Blockbuster to end was right on time. It's a perfect example of an Anti Consumer company which held a literal monopoly on the market.

  7. 0
    Neeneko says:

    All that would have done is taken down Netflix too.  I know it is conventional wisdom to blame DVD by mail and streaming for Blockbuster, but up until not that long ago Blockbuster`s earnings were swamping Netflix but they were still failing due to loan repayments.

    I am trying to recall the details, but basicly what happened was blockbuster got bought up, then its new parent company did some shady accounting to transfer a billion dollars of their debt onto blockbuster, then spun them back off.  So blockbuster ended up with massive loan payments for someone else`s loans and it drowned them.   And it was all legal.

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