Blockbuster has found itself in a situation where it has to wind up its retail and mail distribution business by January 2014 because of the expected decline in demand of its services. Blockbuster may have had a booming business in the 1990s and early 2000s, but not anymore. Online streaming videos like YouTube and companies like Amazon, Netflix, among others have effectively driven Blockbuster out of business as the world is moving from physical items like VHS, DVDs, CDs, and books to digital contents in the form of bytes and pixels.
Joseph P. Clayton, the president of Dish Network Company (the parent company of Blockbuster) announced today that Blockbuster will be ending its retail distribution activities by January 2014. However, those chains which are not under Dish Network will continue to operate for some time. "Consumer demand is clearly moving to digital distribution of video entertainment," said Joseph P. Clayton in a statement.
Despite the closure, Blockbuster will retain its brand as it continues to expand on its digital offerings. "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." Added Joseph P. Clayton in a statement. Moreover, Dish Network will continue to offer the Blockbuster @Home service and the Blockbuster On Demand program will live on.
Although Blockbuster is no more, many will remember its golden days, particularly in 2004 when it was operating about 9,000 stores. It is certainly a name many people will not be too quick to forget.
On the other hand, there are those who are rejoicing at the news. This is what one Blockbuster customer had to say "Yes! All the Blockbuster Video Stores are closing! That means they'll never get back that VHS tape of Vampire In Brooklyn. I won!"
Blockbuster's remaining 300 stores will close by January 2014.
(image via Wikipedia)