NEW YORK (TheStreet) -- Netflix (NFLX) and Apple (AAPL) have hammered the final nail into Blockbuster's coffin: parent company Dish Network (DISH) announced it will close all Blockbuster retail locations by January.
Dish Network said it will cease Blockbuster operations across its 300 remaining U.S.-based stores as well as in its mail DVD distribution warehouses. The plans will make as many as 2,800 employees redundant.
"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," said Dish CEO Joseph P. Clayton in a statement.
Blockbuster's business model was severely crippled in the latter half of the 2000s. Netflix's streaming service and mail DVD program decimated the video rental market, while Apple's iTunes made purchasing digital content convenient.
The company will continue to offer support to Blockbuster's franchise operations, as well as video-on-demand and streaming services.
Dish purchased the bankrupt rental chain at auction in 2011 for $320 million, a far cry from its 2002 market value of $5 billion.
Shares dropped 0.51% to $48.61 by 3:50 p.m. EDT. Over the year, the pay-TV provider has risen 33.6%.
TheStreet Ratings team rates Dish Network as a Hold with a ratings score of C+. The team has this to say about their recommendation:
"We rate Dish Network CORP (DISH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk."