Blockbuster to End Domestic Retail, DVD-by-Mail Services

ENGLEWOOD: Blockbuster is officially ending its retail and by-mail DVD distribution operations in the U.S. by early January 2014.

The company is set to close around 300 remaining U.S.-based retail stores as well as its distribution centers. The Blockbuster By Mail service will end mid-December; all existing customers will be served until that time.

Parent DISH Network Corporation will continue to support Blockbusters domestic and international franchise operations, relationships and agreements. DISH retains licensing rights to the Blockbuster brand and key assets, including its video library. DISH will focus on delivering the Blockbuster @Home service to DISH customers and via its transactional streaming service for the general market, Blockbuster On Demand.

“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” said Joseph P. Clayton, DISH's president and chief executive officer. “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.”