Family Video

From Wikipedia the free encyclopedia

Family Video Movie Club, Inc.
Company typePrivate
IndustryVideo rental
Founded1978
DefunctMarch 2022; 2 years ago (2022-03)
HeadquartersGlenview, Illinois, U.S.
Number of locations
750+ (pre-2021)
Online Web-store only (2021-2022)
Area served
United States, Canada
Key people
Charles Hoogland, CEO
Keith Hoogland, President
Eric Hoogland, Vice-President
OwnerHighland Ventures
Number of employees
~7,000
Now closed Family Video location in Commerce, Texas

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

History[edit]

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.[2] After getting stuck with a large inventory of excess video movies in the late 1970s, Charles got the idea of creating the Video Movie Club in Springfield, Illinois in 1978. The club originally charged a $25 membership fee and $5 rental fee, and later evolved into Family Video.[3]

Because competitor Blockbuster's main focus was larger cities, Family Video was mostly established in rural areas, suburbs, and small-to-midsize cities.[4]

In 2003, Family Video relocated its headquarters from Springfield to Glenview, Illinois. By 2013, Blockbuster had 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.[5][6]

In addition to its brick and mortar locations, Family Video branched off into other markets such as real estate, 24-hour fitness centers, cell phones, and cable television.[7] The company also sold new and previously used items online.[8] Family Video expanded into the Canadian market in 2012.[9]

Later years[edit]

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 used 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.[10][11] Unlike most competitors, Family Video owned the real estate housing their stores, helping the company avoid unsuccessful lease negotiations that led to the demise of Blockbuster, Movie Gallery, and Hollywood Video.[12] Rather than depending on the revenue-sharing model used by others, the chain bought and owned its movies to keep all the rental profit.[13] In addition, it owns a fiber-optic network in the Central Illinois region, called i3 Broadband, as well as a small chain of fitness centers named StayFit-24.[14]

In late 2019, the number of stores was reported to be almost 600,[15] down from a peak of 800, but due to the COVID-19 pandemic, the chain was forced to close 200 stores in autumn 2020, with about 300 locations remaining.[16]

On January 5, 2021, the company announced all remaining 250 stores would close.[17][18] It was announced the chain would become an online web-store only, offering new and used video sales along with Family Video branded merchandise i.e. t-shirts, coffee mugs and tumblers, hats, gym bags, key chains, water bottles etc.[19] However, the website was closed at the end of March 2022, ending Family Video's business after 44 years.[20]

References[edit]

  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. ^ "UIS receives $1 million gift for new recreation and fitness center" (Press release). University of Illinois Springfield. July 13, 2005. Archived from the original on March 9, 2014. Retrieved January 5, 2021.
  3. ^ "History". OTT.X. Retrieved June 7, 2019.
  4. ^ 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.
  5. ^ "Blockbuster to close about 300 stores in U.S." Los Angeles Times. January 22, 2013. Retrieved February 26, 2013.
  6. ^ "Dish Network to close 500 Blockbuster stores". Yahoo! News. Associated Press. February 24, 2012. Retrieved September 10, 2012.
  7. ^ "Chain with Illinois roots still growing after video-rental competitors stumble". TMC News. August 15, 2011. Retrieved September 10, 2012.
  8. ^ Landis, Tim (April 20, 2010). "Family Video building stores while other chains close". The State Journal-Register. Springfield, Ill.
  9. ^ Wolter, Owen (January 17, 2012). "Opening Soon: Family Video Movie Rental Store at Tecumseh and Hall". City News. Retrieved September 10, 2012.
  10. ^ Landis, Tim (February 6, 2013). "Family Video president sees continued growth". The State Journal-Register. Springfield, Ill. Retrieved February 26, 2013.
  11. ^ Penzenstadler, Nick (January 30, 2014). "Movie chain adds pizza to fight streaming wave". USA Today. Retrieved January 5, 2021.
  12. ^ Briggs, James (January 15, 2016). "Video stores still 'alive and well' in Indy". Indianapolis Star. Retrieved January 15, 2016.
  13. ^ Mertes, Micah. "How Family Video stays afloat when bigger chains didn't". Omaha World-Herald. Retrieved January 5, 2021.
  14. ^ Woodside, Nathan. "Provider Spotlight: iTV-3 Expanding Fiber to the Home Service in Central Illinois". Broadband Illinois.
  15. ^ Bach, Trevor (December 13, 2019). "CBD Helps Revitalize Midwestern Video Chain". U.S. News & World Report. Retrieved January 5, 2021.
  16. ^ 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...
  17. ^ Ennis, Tricia (January 5, 2021). "Family Video closing all remaining stores". WTVG News. Retrieved January 5, 2021.
  18. ^ "All Family Video Stores Closing". Family Video. January 5, 2021. Archived from the original on January 6, 2021. Retrieved June 19, 2022.
  19. ^ Family Video, the last video store chain in the U.S., is closing all 250 stores - cleveland.com
  20. ^ Russ Burlingame (March 2, 2022). "Family Video To Close Web Store, Ending the Chain's 44-Year Life". ComicBook.com. Retrieved March 31, 2022.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Family_Video&oldid=1173293856"