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Dish to cut more flagging Blockbuster stores

Dish to cut more flagging Blockbuster stores


Dish Networks CEO Joe Clayton has announced further cutbacks to Blockbuster stores, the second wave since the satellite network's purchase of the brand back in April.

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Dish Network plans to close more of DVD rental chain Blockbuster's stores, further cutting into the 1,500 locations saved from the first reduction in July. Dish CEO Joe Clayton told Reuters that the company is committed to the stores which are performing well, but "there are ones that aren't going to make it. We will close unprofitable stores." Additionally, he revealed that the remaining Blockbuster stores will begin selling Dish subscriptions, and in future could even host in-store service centers for the satellite network.

While this is good news for Dish customers, who will be able to swap out a defective box rather than waiting for an engineer, it's unlikely to foster brand loyalty among Blockbuster customers as they see the number of stores they have access to diminishing. Clayton didn't give details on which stores are struggling or when the cuts will begin, but this second wave of cutbacks since Dish's purchase last April doesn't bode well for the long-term future of the brand.

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