Family Video

Family Video Movie Club Inc. is an American online video rental chain located in the United States and Canada. The family-owned company is headquartered in Glenview, Illinois.[1]

Family Video Movie Club, Inc.
TypePrivate
IndustryVideo rental
Founded1978
DefunctFeburary 28, 2021 (made around 42-43 years)
HeadquartersGlenview, Illinois, United States
Number of locations
approximately 300 rental stores and outlets[1]
Area served
US, Canada
Key people
Charles Hoogland, CEO
Keith Hoogland, President
Eric Hoogland, Vice-President
OwnerHighland Ventures
Number of employees
About 7,000
Websitewww.familyvideo.com
Family Video location in Commerce, Texas

The company ran up to 800 stores at its peak, but closed the last 250 in 2021 and is now an online company only.[2]

History

In 1946, Clarence Hoogland founded Midstates Appliance and Supply Company. His son Charles Hoogland inherited the business in 1953. The company later became a distributor for Magnetic Video.[3] After getting stuck with a large inventory of excess video movies in the late 1970s, Charles had the idea to start the Video Movie Club in Springfield, Illinois in 1978. The club originally charged a $25 membership fee and $5 per rental and later evolved into Family Video.[4]

Because Blockbuster's main focus was larger cities, Family Video decided to establish itself mostly in rural areas, suburbs, and small-to-midsize cities instead.[5]

In 2003, Family Video relocated its headquarters from Springfield to Glenview, Illinois. By 2013, Blockbuster closed almost all of its remaining stores. By the end of 2016, Hastings Entertainment liquidated, making Family Video the sole-surviving video rental chain in the United States.[6][7]

In addition to the brick and mortar store front, Family Video has branched off into other markets such as real estate, 24-hour fitness centers, cell phones, and cable television.[8] The company also sells new and previously used items online.[9] Family Video expanded into the Canadian market in 2012.[10]

In 2013, following the continued decline of competing video rental stores, Family Video formed a partnership with Marco's Pizza providing space for the franchise in many of its stores. The company is using the partnership as a way to deliver video rentals with pizza orders. Family Video also leases space to other retailers such as hair salons and fitness centers.[11][12] Unlike much of its competition, Family Video owns the real estate housing their stores, helping them to avoid unsuccessful lease negotiations that led to the demise of Blockbuster, Movie Gallery, and Hollywood Video.[13] And rather than depending on the revenue-sharing model used by others in the business, the chain buys and owns its movies, allowing it to keep all the rental profit.[14] In addition, it owns a fiber-optic network in the Central Illinois region, called iTV-3, as well as a small chain of fitness centers named StayFit-24.[15]

In late 2019 it was reported the number of stores were almost 600,[16] but due to the impact of the COVID-19 pandemic, the chain was forced to close 200 stores in autumn 2020, with about 300 locations remaining.[17] On January 5, 2021, the company announced all remaining stores would close.[18][19]

References
  1. Kirsch, Noah (February 21, 2017). "The Last Video Chain: The Inside Story Of Family Video And Its $400 Million Owner". Forbes. Retrieved January 5, 2021.
  2. https://www.cleveland.com/entertainment/2021/01/family-video-the-last-video-store-chain-in-the-us-is-closing-all-250-stores.html
  3. "UIS receives $1 million gift for new recreation and fitness center" (Press release). University of Illinois at Springfield. July 13, 2005. Archived from the original on March 9, 2014. Retrieved January 5, 2021.
  4. "History". OTT.X. Retrieved June 7, 2019.
  5. Shropshire, Corilyn (April 6, 2017). "For Family Video, renting movies is the past, present and definitely part of the future". Chicago Tribune. Retrieved January 5, 2021.
  6. "Blockbuster to close about 300 stores in U.S." Los Angeles Times. January 22, 2013. Retrieved February 26, 2013.
  7. "Dish Network to close 500 Blockbuster stores". Yahoo! News. Associated Press. February 24, 2012. Retrieved September 10, 2012.
  8. "Chain with Illinois roots still growing after video-rental competitors stumble". TMC News. August 15, 2011. Retrieved September 10, 2012.
  9. Landis, Tim (April 20, 2010). "Family Video building stores while other chains close". The State Journal-Register. Springfield, Ill.
  10. Wolter, Owen (January 17, 2012). "Opening Soon: Family Video Movie Rental Store at Tecumseh and Hall". City News. Retrieved September 10, 2012.
  11. Landis, Tim (February 6, 2013). "Family Video president sees continued growth". The State Journal-Register. Springfield, Ill. Retrieved February 26, 2013.
  12. Penzenstadler, Nick (January 30, 2014). "Movie chain adds pizza to fight streaming wave". USA Today. Retrieved January 5, 2021.
  13. Briggs, James (January 15, 2016). "Video stores still 'alive and well' in Indy". Indianapolis Star. Retrieved January 15, 2016.
  14. Mertes, Micah. "How Family Video stays afloat when bigger chains didn't". Omaha World-Herald. Retrieved January 5, 2021.
  15. Woodside, Nathan. "Provider Spotlight: iTV-3 Expanding Fiber to the Home Service in Central Illinois". Broadband Illinois.
  16. Bach, Trevor (December 13, 2019). "CBD Helps Revitalize Midwestern Video Chain". U.S. News & World Report. Retrieved January 5, 2021.
  17. Crow, Sarah (October 9, 2020). "This Beloved Store From Your Childhood Is Closing 200 Locations". Family Video has announced its decision to close 200 of its stores...
  18. Ennis, Tricia (January 5, 2021). "Family Video closing all remaining stores". WTVG News. Retrieved January 5, 2021.
  19. https://www.familyvideo.com/store-status
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.