Blockbuster ending retail, mail service; 1 Colorado Springs store closing Sunday
SAN FRANCISCO – The final curtain is falling on the remaining Blockbuster video-rental stores that Dish Network Corp. runs in the U.S.
The closures announced Wednesday will affect about 300 Blockbuster locations scattered around the country, with all scheduled to close by early January. As part of Dish Network’s retreat, Blockbuster’s DVD-by-mail service is also shutting down next month.
About 2,800 people who work in Blockbuster’s stores and DVD distribution centers will lose their jobs, according to Dish Network, which is based in Englewood, Colo.
In the Pikes Peak region, just two Blockbuster locations have hung on after years of store closings.
But the one at 6530 S. Academy Blvd., on Colorado Springs’ southwest side, is scheduled to close at the end of business Sunday. Bright yellow “store closing” banners are hung across the building, while other signs proclaim the final days of a going-out-of-business sale. All DVDs and games are being sold, as are fixtures, furniture and equipment.
That leaves the Springs with only the store at 3790 E. Woodmen Road, on the city’s northeast side. Employees at that store were telling callers Wednesday they didn’t know when the location would close.
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.
“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.
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 Dish Network couldn’t wring a profit from Blockbuster either, prompting even more store closures. The satellite-TV provider had already closed about 500 Blockbuster stores this year. The latest closures will leave the U.S. with just 50 Blockbuster stores operating under franchise agreements.
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 the country’s most ubiquitous retailers with 9,100 stores in the U.S.
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.
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Rich Laden of The Gazette contributed to this report.
Blockbuster, the video rental chain, announced Wednesday it’s closing its remaining 300 stores around the country. Of Colorado Springs’ last two stores, this location, at 6530 S. Academy Blvd. on the southwest side, already is in the final days of a going-out-of-business sale. Blockbuster’s last Springs location remains open — for now — at 3790 E. Woodmen Road on the city’s northeast side. RICH LADEN, The Gazette





