Dish Network to Close Remaining Blockbuster Stores -- Update - Wall Street Journal

(Adds number of Blockbuster's franchised locations; updates stock movement)

By Michael Calia

Dish Network Corp. (DISH) said Wednesday that it will shut down all of video-rental chain Blockbuster LLC's remaining retail sites and mail DVD distribution centers, ending an era in home entertainment.

Blockbuster's remaining retail stores--approximately 300 of them--will close by early January, Dish said. The company has closed hundreds of stores over the past 18 months. Dish did say that Blockbuster's franchised operations--about 50 in the U.S. and 400 internationally--remain open for business.

"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," said Dish Chief Executive Joseph P. Clayton. "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."

Blockbuster, once synonymous with video rentals, had encountered a steady decline in business as rental services such as Netflix Inc. (NFLX) and Outerwall Inc.'s (OUTR) Redbox increasingly cut into its business. More recently, Blockbuster has had to contend with growing streaming and on-demand services that consumers can use without leaving their homes.

Blockbuster tried to compete with its own mail business, but that will end in the middle of December, Dish said. However, Dish said it would retail licensing rights to the Blockbuster brand, including its video library, and that it would continue its Blockbuster @Home and On Demand services.

Shares of Dish were down 18 cents at $48.68 on Wednesday. The stock is up 34% so far this year.

Write to Michael Calia at michael.calia@wsj.com