Sydney's last Blockbuster video store is closing down as entertainment junkies dump DVDs for online streaming.

The outlet in Mt Annan, on the city's southwest outskirts, will shut its doors for the last time on August 11 after running as a family business for 16 years.

Owners Adrian and Helen Smith said they were proud to be the last store in the once-legendary network standing.

Sydney's last Blockbuster video store, in Mt Annan, (pictured) is closing down as entertainment junkies dump DVDs for online streaming

'There is no single reason why we had to sell, with all of the other mediums such as Netflix and Foxtel taking up a bit,' Mr Smith told the Macarthur Chronicle.

'It is also largely a generational change, with people consuming entertainment differently. You add it all up and it just becomes unviable.'

The Mt Annan store brings the number of stores standing in Australia to 12, in addition to about 70 automated booths, mostly in Brisbane.

Blockbuster had 370 Australian outlets in 2007 after it opened its first shop in Melbourne in 1991. Stores in Maitland and Canberra are still open in NSW.

The Mt Annan store brings the number of stores standing in Australia to 12, in addition to about 70 automated booths, mostly in Brisbane (another store closing pictured)

Blockbuster had 370 Australian outlets in 2007 after it opened its first shop in Melbourne in 1991. Stores in Maitland and Canberra are still open in NSW

The shop will have a closing down sale from August 9 to clear out as much of the remaining 25,000 DVDs, Blu-Rays, TV series and games.

Mr Smith said the store stayed open so long because of passionate community support, once employing more than 100 staff, many their first job.

'Many people are reminiscing and getting nostalgic, remembering coming in on date nights and running around the store in school holidays,' he said.

The sad news was announced via the Cold Rock ice cream parlour next door, also owned by Adrian and Helen Smith, on its Facebook page.

'Thanks to our fantastic and loyal customers and our amazing and dedicated staff we have gone against the trend and stayed in business for over 16 years to become the last Blockbuster Store in Sydney,' they wrote.

The shop will have a closing down sale from August 9 to clear out as much of the remaining 25,000 DVDs, Blu-Rays, TV series and games

'But, all good things must end.'

The Cold Rock will also close as it was too expensive to operate on its own.

Dozens of stubborn locals formed a Facebook page in a last-ditch attempt to save the store, vowing to protest the closure.

'On the 11th of august we peacefully protest out the front if we have to left right goodnight some people to save Blockbuster we gotta do what we gotta do to save block buster,' it wrote.