(ENGLEWOOD, Colo.) — Blockbuster, the one-time video rental giant known for its blue and yellow retail locations, plans to close its 300 remaining U.S. stores and end its DVD-by-mail service by the end of January 2014.
DISH Network, which acquired Blockbuster out of bankruptcy in 2011, made the announcement Wednesday.
“This is not an easy decision,” DISH CEO Joseph Clayton said, “yet consumer demand is clearly moving to digital distribution of video entertainment.”
“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,” Clayton added.
Those digital assets include the Blockbuster @Home service and Blockbuster On Demand. DISH said it will also retain the licensing rights to Blockbuster’s video library.
Some individually-owned Blockbuster locations may remain open.
Copyright 2013 ABC News Radio
John Newsome and Anne Woolsey, CNN