Video rental chain Blockbuster is planning to cut 300 stores or about 35% of its remaining U.S. locations. The closures will take place in the coming weeks as leases expire. Dish Network, which acquired Blockbuster out of bankruptcy in April of 2011, announced the closing of 500 stores in February of 2012, so at least this year’s round closures is smaller than last year’s. Blockbuster U.K., which is also owned by Dish, announced a round of closings on January 19th.
A spokesperson for the Dish Network told Home Media Retailing
, "We continue to see value in the Blockbuster brand, and we will continue to analyze store profitability level and--as we have in the past–close unprofitable stores."
Industry analysts believe that both streaming (by Netflix and others) and competition from the cheaper Redbox kiosks are eroding Blockbuster’s share of the home video rental market.