Blockbuster Video Ends Retail Era in US

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Blockbuster Video, once a staple of strip malls around the country, is officially closing its last 300 corporate-owned retail stores in the U.S., victims of the new digital era of movie delivery.

Dish Network, the current owner of the former king of video rental, will maintain the brand and focus on streaming and on-demand services, the company said. The company is also closing distribution centers that back a DVD-by-mail service.

"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," Dish chief executive officer Joseph Clayton said in a statement. "We continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings."

Blockbuster, which grew into a national powerhouse under the leadership of Wayne Huizenga, changed the way people watch movies. In 2004, when Blockbuster was owned by Viacom, the chain had more than 9,000 stores. When Dish bought the company out of bankruptcy in 2011, there were 1,700 stores remaining.

Blockbuster was the high-traffic centerpiece of thousands of shopping malls, drawing customers at a regular cycle. But the chain was unable to adapt when the movie studios switched to a pricing model of selling movies on DVD, rather than pricing them for the rental market.

Blockbuster launched a DVD delivery service but lost a battle with NetFlix. The fate of the retail outlets was further sealed by the success of Redbox, which offers rentals through vending machines.

Dish said the remaining 300 stores would be shuttered by January. About 50 franchisee-owned stores scattered around the country will remain open.