Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

January 23, 2013 -

Dish Network announced that it plans to close hundreds of Blockbuster stores in the next couple of weeks and expects to cut thousands of jobs as a result. The video and videogame rental company was bought by Dish in 2010 after the company went bankrupt. CNN Money reports that 300 stores will be closed in the United states and 3,000 jobs will be lost.

The company will still continue to operate about 500 stores in the United States. Some stores will be closed as their leases end, while others will be shut down based on their poor performances.

"We continue to see value in the Blockbuster brand and we will continue to analyze store level profitability and -- as we have in the past -- close unprofitable stores," said Dish spokesman John Hall., in an email to CNN Money.

Blockbuster has had a tough time trying to compete with services like Netflix and kiosk-based service Redbox in recent years. The company has done its best to adapt by offering streaming services and kiosks of its own throughout the U.S.

We will have more on this story as it develops.

Source: CNN Money

 


Comments

Re: Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

I hate when people lose their jobs but let's be honest Blockbuster as a company deserves this. In the early and mid 1990s there were a ton of mom and pop video stores you could go to that rented movies and games. Yes Blockbuster offered a larger selection at times but Blockbuster pretty much ran them out of business.

Then they jacked up rental prices to an extreme high. Remember when new rentals for movies was 6.99 and games shot up to 8.99 for rentals?

Towards the end of the PS1 era I was finished renting at blockbuster because it was pointless! A waste of money! I was better off buying the games because at that point the gaming industry was forced to sell at 39.99 and the next era was 49.99 so I would be wasting my money literally renting at block buster.

With a horrible practice of charging for late fees sometimes for no reason at all people stopped going there. Then they promised no more late fees and had a huge marketing campaign but if you keep it longer for a certain amount of days you bought the product which caused State Governments to sue and win.

Then McDonald's had a brilliant idea of store rental kiosks and Netflix starting making renting over the internet and streaming a reality. We are now back to early 1990s levels of renting even renting online is cheaper then Blockbuster.

Let Blockbuster die

Re: Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

I think you are misinformed. But first, you say you hate when people lose their jobs, but Blockbuster deserves it?

Blockbuster is not the same company it was in the 90s. The company was sold off at a loss that left them with tons of debt. Which wasn't managed well by the executives who, in order to compete with NetFlix, started Blockbuster Online with the ability to exchange online movies for free in-store movie rentals. They had hoped customers would come in and buy/rent something on top of that.

But most customers just came in for the exchange, which started caused the stores to not make as much as as they did the previosu year. (Most retail stores in general always try to make more profit each day than they did the same day a year before).

So Blockbuster started changing the Online aspects of it, but it just wasn't leveraging their brick and mortor stores.

As far as the late fees are concerned, I started working at Blockbuster after they stopped doing late fees. But if you think someone that rented a movie for 2 days and then kept it for over 2 months shouldn't be penalized or charged the full price of the movie, you're wrong. Otherwise it's a loophole that would allow people to buy product at a cheaper price.

Read the terms of service for ANYTHING you sign up for. They never charged per day you had the title, but if you kept it for 60 days afetr the return date, then you got charged the full price. Of course, you could return the title and just pay a reduced price, but that is more than fair.

I've seen games returned many months after they were rented. I've seen people return empty boxes, I've seen people so sure of themselves that they returned a title that they apolygized when they found the box between the seat of their car.

I've known former co-workers who had families to support and one individual who had cancer. Not sure if she ever beaten it, but there are good people at those stores. Sure the executives mismanged the company to where it's gotten to now, but I'll never cheer about people losing their jobs or a company going out of business.

That's just one less potential employer for the many of people out of work. I'm just very lucky I found a job using my college degree before my store was closed some time after I left, but more than a year.

-Mrxknown_JG-

Re: Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

That would make Blockbuster a perfect example of when a business can get a monopoly, even a local one.

Re: Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

This is a death spiral. As they continue to close stores, they will lose money. So when they close more stores to slow the loss of money, they hasten the demise instead.

Re: Dish to Close 300 Blockbuster Stores, Cut 3,000 Jobs

It's not just kiosks and streaming services. The handful of rental places still holding on are kicking Blockbuster around pretty hard, too. Family Video's got lower prices, better selections, better discount and subscription programs, and when you make mistakes even less punitive late fees.

The whole business model might be dying out, but Blockbuster's problems go much deeper than that.

 
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