With the increase of digital movie streaming and rental boxes, traditional movie rental companies are facing some stiff competition.
The Blockbuster on Brunswick Road in Grass Valley is set to close April 7, according to store managers.
“Our prices are continually going down. Everything is up for sale,” said April Lund, Blockbuster manager.
Three hundred Blockbusters have closed nationwide due to profitability assessment, said Barbara Ellis, Blockbuster director of marketing.
“We are owned by Dish (Network), and Dish is continuing to examine the business and look at stores from a profitability standpoint,” Ellis said. “Profitability isn’t always dictated by how much traffic the store has. There’s other things to take into consideration, such as overhead and rent. The company has been closing stores since it was bought out of bankruptcy two years ago.”
As to whether or not the mass closures are a result of increased prevalence of digital movie gathering, like Netflix, Ellis said physical movie rentals are still popular.
“I think you’ll find silver disk, the rental or distribution of actual disks, is just as strong as it’s ever been,” Ellis said.
With the competitive video rental and streaming options of Netflix, which generated $2.16 billion in revenue in 2010, according to Statista.com, and Redbox, which has rented more than 2 billion discs, according to the Redbox website, that Blockbuster is facing increased competition is a fact more than a question.
At this point in time, no other Blockbusters are expected to close, Ellis said. The Blockbuster store at 736 Taylorville Road in Grass Valley will remain open.
“We are open, and we are going forward,” said Sonya Britt, Taylorville Blockbuster store owner.
To contact Staff Writer Jennifer Terman, email email@example.com or call 530-477-4230.