Dish Network has revised the plans for its recently purchased Blockbuster video rental business. After originally saying that about 1500 stores would remain open, with 90% employee retention, the satellite provider is backtracking . The company CEO is now claiming that only profitable stores will remain open.
"We are committed to keeping the profitable stores open that are generating positive cash flow, but there are ones that aren't going to make it," CEO Joe Clayton said. Some of the remaining stores will be re-purposed into Dish network customer service outlets. There is no time line for the closures, but don’t be surprised to see your local video rental store shut down.
Dish paid $320 million for Blockbuster with the intention of using the brand and existing streaming rights to build a Netflix competitor. The resulting service is initially only open to Dish subscribers. When was the last time you rented a movie?