Family Video

History

Genesis

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. 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. The chain was later renamed Video Movies Inc. by the 1980s before becoming Family Video.

Development

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

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. The company also sold new and previously used items online. Family Video expanded into the Canadian market in 2012.

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 leased space to other retailers such as hair salons and fitness centers. 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. Rather than depending on the revenue-sharing model used by others, the chain bought and owned its movies to keep all the rental profit. It also owned a fiber-optic network in the Central Illinois region, called i3 Broadband, as well as a small chain of fitness centers named StayFit-24.

Closure

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

On January 5, 2021, the company announced all remaining 250 stores would close, and the chain would become an online web-store only. The online store offered new and used video sales along with Family Video branded merchandise such as t-shirts, coffee mugs and tumblers, hats, gym bags, key chains, water bottles, and so on. However, the website was closed at the end of March 2022, ending Family Video's business after 44 years.

In popular culture

• Family Video is featured in Stranger Things as the video store where Steve Harrington and Robin Buckley worked during the fourth season.

References

References

1. Kirsch, Noah. (February 21, 2017). "The Last Video Chain: The Inside Story Of Family Video And Its $400 Million Owner". [[Forbes]].
2. (July 13, 2005). "UIS receives $1 million gift for new recreation and fitness center". [[University of Illinois Springfield]].
3. (December 16, 1988). "Video Movies opens new store". Petoskey News-Review.
4. Shropshire, Corilyn. (April 6, 2017). "For Family Video, renting movies is the past, present and definitely part of the future". [[Chicago Tribune]].
5. (January 22, 2013). "Blockbuster to close about 300 stores in U.S.". [[Los Angeles Times]].
6. (February 24, 2012). "Dish Network to close 500 Blockbuster stores". [[Yahoo! News]].
7. (August 15, 2011). "Chain with Illinois roots still growing after video-rental competitors stumble". TMC News.
8. Landis, Tim. (April 20, 2010). "Family Video building stores while other chains close". The State Journal-Register.
9. Wolter, Owen. (January 17, 2012). "Opening Soon: Family Video Movie Rental Store at Tecumseh and Hall". City News.
10. Landis, Tim. (February 6, 2013). "Family Video president sees continued growth". The State Journal-Register.
11. Penzenstadler, Nick. (January 30, 2014). "Movie chain adds pizza to fight streaming wave". [[USA Today]].
12. Briggs, James. (January 15, 2016). "Video stores still 'alive and well' in Indy". [[Indianapolis Star]].
13. Mertes, Micah. "How Family Video stays afloat when bigger chains didn't". [[Omaha World-Herald]].
14. "Provider Spotlight: iTV-3 Expanding Fiber to the Home Service in Central Illinois".
15. Bach, Trevor. (December 13, 2019). "CBD Helps Revitalize Midwestern Video Chain". [[U.S. News & World Report]].
16. Crow, Sarah. (October 9, 2020). "This Beloved Store From Your Childhood Is Closing 200 Locations".
17. Ennis, Tricia. (January 5, 2021). "Family Video closing all remaining stores". [[WTVG]] News.
18. (January 5, 2021). "All Family Video Stores Closing". Family Video.
19. Morona, Joey. (2021-01-05). "Family Video, the last video store chain in the U.S., is closing all 250 stores".
20. Burlingame, Russ. (March 2, 2022). "Family Video To Close Web Store, Ending the Chain's 44-Year Life". [[ComicBook.com]].