Blockbuster was once the dominant retailer in movie rentals for years, but that has officially come to an end. The company announced today that it will be closing its remaining 300 retail locations as well as its DVD-by-mail program. As reported by usatoday.com:
“The retail company that introduced millions of Americans to Friday family movie nights said Wednesday it will close its 300 remaining U.S. stores by early January next year. Its DVD-by-mail business will also be shut down by mid-December.
“‘This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,'” said Joseph P. Clayton, CEO of Dish Network, Blockbuster’s parent company.”
Blockbuster was infamously slow to innovate over the last decade or so, which ultimately led to its demise. The company watched Netflix ingeniously take over the video rental business by using something as antiquated as the U. S. Postal Service. The company was also slow to embrace the digital streaming revolution. Ironically, now that its entire physical operation will be shutting down, all that will be left of Blockbuster will be its digital arm which will likely be operated by Dish Network. As also reported by usatoday.com:
“Dish said it will retain licensing rights to the Blockbuster brand and its vast video library.
“Dish said it will focus on expanding its Blockbuster @Home business, a streaming service available to Dish pay-TV customers. Blockbuster On Demand, the company’s streaming service for the general public, will also continue to operate.”
Blockbuster will serve as an example to all businesses, regardless of industry status, that if it fails to innovate, it will eventually fail.