Family Video is one of the last remaining brick-and-mortar movie and video game rental businesses in the United States. Its competitors, Blockbuster and Hollywood Video both went out of business in 2010 while Family Video was able to withstand the digital age and eventually began renting games for popular gaming systems like WII U, Xbox and PlayStation.
In terms of Family Video’s beginnings, it all started in 1978 in Illinois when the CEO, Charles Hoogland, became a distributor for Magnetic Video. He was currently running a business called Midstates Appliance and Supply Company but found himself possessing a large inventory of movies.
This caused him to start a video club that charged a $25 membership and a $5 rental fee. This club would later evolve into Family Video.
The chain would have over 750+ in Canada and the United States, but the largest concentration of stores is in the Midwest.
In 2013, Family Video formed a partnership with Marco’s Pizza to stave off the decline of video rental stores. They began offering a combined deal with Marco’s, where you could get a pizza and a free rental.
One of the reasons that Family Video has stayed while other video rental companies have gone under is due to the fact that they own their properties and rent them to other businesses, instead of renting from a business like Blockbuster and Hollywood Video.
Hoogland placed a majority of the shops in rural areas, like small cities and suburbs. In 2017, the company pulled in roughly $400 million in revenue. The current CEO, Keith Hoogland states that part of the reason Family Video has survived as long as it has is that they don’t follow the same method as the other video rental stores.
Instead of paying fees to big movie companies for use of the films, they purchase the films outright and keep all of the rental proceeds. In addition to this, Hoogland has expanded his business venture into the restaurant world by partnering with Marco’s Pizza. In fact, he owns 149 franchises.
However, the COVID-19 pandemic hit Family Video hard, forcing them to close 200 of their stores in an effort to stay afloat. The remaining 300+ stores are spread throughout the Midwest and the South. The company announced the closures in a statement on their website, encouraging patrons to stop by stores and tweet on social media using the hashtag #SavetheVideoStore. The website lists the remaining locations in each state.
Jeri Hensley
Creative Director and Reporter