Dish Network announced that it would be closing all the retail locations of Blockbuster by January next year. The closure would affect all the 300 or so locations of the video rental chain. An estimated 2,800 employees would lose their jobs. In a statement, Dish Chief Executive Joe Clayton said, "This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment."

Dish acquired Blockbuster in a bankruptcy auction two years ago for a price tag of USD 320 million. A Reuters report said that at its peak in 2002, Blockbuster once held a market value of USD 5 billion. After acquiring the video rental chain, Dish originally intended to keep 90% of the outlets representing 1,500 stores and 15,000 employees, in operation. However, as the brand failed to compete with online retailers like Amazon.com Inc, Netflix and Apple's iTunes, Dish gradually shut down stores and reduced its workforce.