Dish Network said on Wednesday it will close all the retail locations of the Blockbuster video rental chain by January, as it failed to compete in the digital world. The company said it would close its approximately 300 remaining U.S.-based retail stores, as well as its distribution centers.

"This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment," said Joseph P. Clayton, DISH president and chief executive officer. "Despite our closing of the physical distribution elements of the business, we continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offerings."

The Blockbuster By Mail service will end mid-December, DIsh said.

Over the past 18 months, Blockbuster has divested itself of assets in the United States, as well international assets, including operations in the United Kingdom and Scandinavia. DISH plans to continue to support Blockbuster's domestic and international franchise operations, relationships and agreements.

DISH will retain licensing rights to the Blockbuster brand, and key assets, including the company's significant video library. The company said it would focus on delivering the Blockbuster @Home service to its customers, and on its transactional streaming service for the general market, Blockbuster On Demand.

The Blockbuster @Home service offers over 15 movie channels including STARZ Cinema, EPIX, Sony Movie Channel, and Hallmark Movie Channel, plus over 20,000 movies and TV shows streamed to TVs, computers or iPads. The service includes access to the Blockbuster @Home 'app' currently available to the TVs served by DISH's Hopper Whole-Home HD DVR set-top box.