How This Chain Beat Blockbuster And Proved That Video Rental Stores Aren't Dead
For many, the closure represented the end of an era, as the movie industry is now dominated by livestreaming and Netflix.
But Family Video, a chain with more than 700 stores in the Midwest and Canada, tells The Huffington Post that business is thriving."If you came in and looked at my books, you would see the video rental business is far from dying," Keith Hoogland, president of Family Video, told HuffPo's Caroline Fairchild.
In fact, Family Video recently opened 18 more stores.
How has Family Video managed to thrive, while Blockbuster failed?
By committing to its brick-and-mortar strategy, Fairchild writes.
Customers at Family Video pay less than $3 for a rental. The chain also has negotiable late fees and free movie rentals for children. This customer-friendly environment keeps people coming back to the store to rent movies.
Meanwhile, Blockbuster fell victim to poor management and decisions. The company tried to jump to digital videos, but ended up neglecting stores and alienating customers in the process.While Family Video is private, Hoogland told Fairchild that the company has boasted positive same-store-sales for 30 years.