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

Key Information

History

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Genesis

[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. 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.[2] 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.[3]

Development

[edit]

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]

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.[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] 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.[14]

Closure

[edit]

In late 2019, the number of stores was reported to be almost 600,[15] 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.[16]

On January 5, 2021, the company announced all remaining 250 stores would close,[17][18] 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.[19] However, the website was closed at the end of March 2022, ending Family Video's business after 44 years.[20]

[edit]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Family Video

View on Grokipedia
from Grokipedia
Family Video Movie Club Inc. was an American brick-and-mortar video rental chain that operated from until its closure in 2021, specializing in the rental and sale of DVDs, Blu-rays, video games, and related merchandise across the and . Founded by Charlie Hoogland as the video division of his family-owned Highland Ventures, the company began with its first store in , initially named Video Movie Club, and grew into the last major surviving chain of its kind after outlasting competitors like Blockbuster. Under the leadership of Keith Hoogland, Charlie's son and company president since 1995, Family Video expanded to a peak of approximately 800 stores, primarily in rural and suburban areas of the Midwest, Southwest, and Northeast, employing nearly 10,000 people at its height. Headquartered in , the privately held family business diversified beyond video rentals by owning its store properties outright, which allowed it to sublease excess space to franchises like and Stay Fit 24 gyms, generating additional revenue streams estimated at $450 million annually in the late . The chain's decline accelerated with the rise of streaming services, but the delivered the final blow, leading to the permanent closure of over half its stores in 2020 and the remaining 250 locations in early 2021, after which Highland Ventures shifted focus to its and other holdings.

Overview

Founding and Ownership

Family Video traces its origins to the Hoogland family's longstanding involvement in the appliance distribution sector. In 1946, Clarence Hoogland established Midstates Appliance and Supply Company in , as a wholesale distributor of appliances and electronics. His son, Charles Hoogland, inherited the business in 1953 and expanded it into new areas, including early dealings with emerging video technology. By the late 1970s, facing an overstock of videocassette tapes from a distribution partnership with Corporation, Charles launched the company's pivot into video rentals. The video rental venture began in 1978 when Charles Hoogland founded Video Movie Club, the first store opening in . This marked Family Video's establishment as a distinct entity focused on rentals, initially operating as a membership-based club to capitalize on the novelty of technology. The initial business model featured a $25 annual membership fee, granting access to rentals priced at $5 per tape, which helped build customer loyalty in an era before widespread video availability. The operation rebranded to Family Video in the early to emphasize its family-oriented approach and ownership structure. Ownership of Family Video has remained within the Hoogland family through Highland Ventures Ltd., a formerly headquartered in (relocated to , in 2022), that oversees the broader portfolio. Charles Hoogland served as the founding CEO, guiding the company's early development until his passing in 2020. His sons, Keith Hoogland and Eric Hoogland, assumed key roles, with Keith becoming president and CEO in 1995, while Eric served as . This generational continuity has defined the company's private, family-centric governance, distinguishing it from publicly traded competitors in the video rental industry.

Geographic Reach and Scale

Family Video achieved its greatest geographic reach in the United States, peaking at over 800 stores by the mid-2000s. The chain strategically concentrated its operations in rural areas, suburbs, and small cities, particularly in the Midwest, to minimize competition from larger retailers. This approach led to an absence of stores in major urban centers such as and , allowing the company to dominate underserved markets. In 2003, under the ownership of the Hoogland family, Family Video relocated its headquarters from , to , to better support its expanding operations. The move facilitated centralized management across its nationwide footprint, which spanned 19 states at its height. The company extended internationally by entering the market in the early , operating more than 10 stores primarily in . At its operational peak, Family Video employed nearly 10,000 staff members across its locations in the United States and .

History

Origins in Family Business

The Hoogland family's business origins trace back to 1946, when Clarence Hoogland established Midstates Appliance and Supply Company in , as a wholesale distribution firm specializing in household appliances supplied to small independent retailers. Clarence, a former salesman, built the company on a model of efficient and regional supply chains, capitalizing on the post-World War II boom in consumer goods. In 1953, Clarence's son, Charles (Charlie) Hoogland, inherited and assumed leadership of Midstates at a young age, steering it through the mid-20th century's economic shifts. As competition from emerging big-box retailers intensified in the and , the company evolved from appliance distribution to broader and product lines, adapting its wholesale expertise to handle items like audio-visual and related media goods. This transition leveraged Midstates' established networks for physical product distribution, providing a foundational skill set in inventory management and retailer partnerships that would later support media-focused ventures. Keith Hoogland, Charles's son and the third generation, grew up immersed in the family enterprise and joined full-time immediately after graduating from in 1982 with a degree in . His early exposure to the operations of Midstates, including its distribution challenges and adaptations, instilled a deep understanding of scalable wholesale models rooted in the appliance era. This generational continuity in the culminated in a strategic pivot, with the 1978 founding of Video Movie Club as an extension of Midstates' distribution capabilities.

Early Expansion (1980s–1990s)

Following its founding in 1978 as the Video Movie Club of Springfield by Charles Hoogland in Illinois, Family Video experienced rapid organic growth throughout the 1980s, expanding from a single location to hundreds of stores by the end of the decade. This expansion was driven by Keith Hoogland, Charles's son, who joined the company in 1982 and prioritized underserved rural and small-town markets in the Midwest, where competition from larger chains was minimal. The chain's strategy emphasized community-oriented sites in areas with limited entertainment options, allowing it to penetrate markets in states like , , and before gradually spreading eastward and westward. By the early 1990s, Family Video had grown to more than 600 locations, establishing a strong regional footprint through steady, debt-averse openings rather than aggressive acquisitions. The company's core offering during this period centered on tape rentals, capitalizing on the burgeoning revolution that made movies accessible beyond theaters. As players became affordable household items in the mid-1980s, Family Video adapted quickly by stocking a wide selection of titles, from new releases to classics, to meet rising consumer demand for at-home . This focus on rentals positioned the chain as a convenient alternative in rural areas lacking multiplexes or cable options, fostering customer loyalty through late fees waived for members and a curated inventory that reflected local tastes. The shift to also aligned with broader industry trends, where rental revenues surged as households embraced the format over prerecorded sales. Financially, Family Video's early strategies emphasized cost control and ownership to ensure profitability amid the competitive video rental landscape. Unlike many rivals that relied on revenue-sharing agreements with studios, the company purchased tapes outright, retaining full rental income while sourcing initial inventory through ties to the family-owned Midstates Appliance & Supply . This approach, combined with buying or building store properties rather than leasing, minimized ongoing expenses and enabled reinvestment in expansion. By the 1990s, these practices had solidified the chain's , allowing it to weather format shifts and economic pressures while maintaining low overhead in its Midwestern strongholds.

Peak Operations and Diversification (2000s–2010s)

During the , Family Video achieved significant operational growth, expanding to over 750 stores by the mid-decade and reaching 759 locations across 19 states and by 2017, making it one of the largest video rental chains in the United States. This expansion was supported by a strategic relocation of its headquarters in 2003 from , to Glenview, a near , which established a central hub in a two-story office facility to streamline national distribution and inventory management for its growing network. By the mid-, following the liquidation of competitors like in 2016, Family Video emerged as the last major national video rental chain in the U.S., sustaining operations through a resilient amid the industry's contraction. The company adeptly adapted to the DVD era by purchasing inventory outright rather than relying on revenue-sharing agreements common among rivals like Blockbuster, allowing it to retain 100% of rental proceeds and gain early access to new releases—often weeks or months before streaming services due to more flexible licensing. This approach, combined with a low-overhead model featuring company-owned stores, in-house of shelving and , and reduced store footprints that enabled subleasing space to complementary businesses, helped maintain profitability even as digital streaming posed early threats in the late and . In 2012, Family Video briefly extended its reach into as part of its diversification efforts. Under parent company Highland Ventures, Family Video pursued diversification beyond video rentals to bolster long-term stability, owning the real estate for nearly all its stores—valued at up to $750 million by 2017—which provided a valuable asset base and rental income potential from excess space. The portfolio expanded to include 11 fitness centers operated directly by Highland Ventures, as well as electronics repair services through Digital Doc and 149 franchises. Additionally, many stores offered cell phone sales and prepaid wireless coverage through partnerships like Total Wireless, enhancing in-store revenue streams. In 2009, Family Video acquired fiber-optic provider OmniLEC and rebranded it as iTV-3 (later ), launching cable TV, , and phone services in starting in 2010 with bundled packages up to 300 channels.

Decline and Closure (2020–2022)

In 2020, the severely impacted Family Video's operations, forcing temporary closures of all stores for over 60 days and leading to the permanent shuttering of approximately 250 locations—nearly half of its roughly 500 stores at the start of the year—due to reduced foot traffic and halted new movie releases. This reduced the chain to about 250 remaining stores by year's end, primarily in smaller Midwest communities where streaming penetration was lower. Prior to the pandemic, the company had already been declining from a peak of over 800 stores in the early , accelerated by the rise of streaming services like , which eroded the physical rental market over the preceding decade. On January 5, 2021, parent company Highland Ventures announced the closure of all remaining 250 stores across the U.S. and , citing the ongoing effects of the as the decisive factor after unsuccessful efforts to sustain operations. The final day for movie and game rentals was January 6, 2021, after which locations shifted to sales of inventory, including DVDs, video games, and merchandise like CBD products. Following the physical store closures, Family Video transitioned to an online-only model, selling remaining inventory through its website and eBay store to liquidate stock. This e-commerce phase continued until March 2022, when the company announced the impending shutdown of FamilyVideo.com and its online platforms, marking the end of the brand's 44-year operations. In July 2022, Highland Ventures announced it was relocating its headquarters from Glenview, Illinois, to Nashville, Tennessee.

Business Model

Store Format and Customer Services

Family Video stores typically spanned approximately 3,800 square feet, featuring a "live floor" layout that allowed customers to freely browse open shelves stocked with DVDs, Blu-rays, video games, and related merchandise. This design included dedicated sections for new releases, genre-based categories, and add-on retail items such as snacks, apparel, and accessories, with checkout counters positioned near the entrance for quick transactions. The overall ambiance was tailored to be welcoming and navigable, promoting an engaging in-store experience focused on discovery and convenience. The company's ownership of the real estate for most locations enabled customized store designs and low operational costs, as portions of the building—often around 2,000 square feet—could be leased to complementary businesses like fast-food chains such as or Subway. This model supported efficient space utilization and flexibility in adapting to local market needs without the burden of escalating rents. Customer services centered on a membership-based rental system, originally introduced in 1978 with a $25 annual fee that granted access to movies starting at $5 per rental. By the 2010s, pricing had adjusted to around $3.50 per night for new releases, with options for extended rentals at lower daily rates. Family Video emphasized policies, including free rentals of G- or PG-rated children's movies to encourage parental visits, and a lenient approach to late fees that often allowed waivers or forgiveness through promotional amnesty programs. Content curation prioritized family-oriented selections, with prominent displays for new family films, classics, and educational titles, while any mature content was segregated to discreet areas. Additional perks included in-store reservations for popular titles upon request and partnerships such as delivery at about 140 locations, enhancing the convenience of combined entertainment and dining options.

Inventory Management and Partnerships

Family Video distinguished itself in the video rental industry by purchasing its inventory of movies and video games outright, rather than entering into revenue-sharing agreements with studios that were common among competitors like Blockbuster. This approach allowed the company to retain full proceeds from rentals, providing greater financial control over its stock of DVDs, Blu-rays, and games, which spanned thousands of titles across its stores. By owning its inventory completely, Family Video avoided the ongoing royalty payments that burdened other chains, enabling more flexible pricing and promotional strategies, such as offering new releases at lower rental rates to compete with streaming services. The company's practices emphasized in a declining market, with stores maintaining a curated selection based on demand while adapting to reduced . As rental volumes dropped, Family Video rotated stock by promoting older titles at discounted prices and reallocating shelf space within its owned properties. During the chain's closure in , the company liquidated its remaining through , allowing to purchase used movies and games at reduced prices as part of winding down operations. A key partnership that supported inventory monetization and foot traffic was formed in 2012 with , under which Family Video became the pizza chain's largest franchisee, operating over 140 co-located outlets by 2017. This $100 million deal integrated pizza franchises into many Family Video stores, enabling bundled offerings like movie rentals delivered with food orders to boost overall revenue and encourage in-store visits. The collaboration leveraged Family Video's real estate holdings to diversify income streams without relying solely on rentals. Family Video's sourcing strategies were rooted in its origins as a family-owned . The business traces back to 1946, when Clarence Hoogland founded Midstates Appliance & Supply Company, which his son later expanded into distribution, including VCRs and related media products. This heritage provided early access to video playback technology and tie-ins with electronics sales, evolving into the core rental model by 1978 when excess VCR inventory prompted the opening of the first store.

Legacy and Impact

Cultural Significance in Video Rental Industry

Family Video emerged as the last surviving major video rental chain in the United States by 2016, outlasting competitors like Blockbuster, which closed its final corporate-owned stores in 2014. With over 700 locations primarily in rural and small-town areas across the Midwest, , Southwest, and Northeast regions, the chain filled a critical niche in communities where internet was unreliable or unavailable, enabling access to VHS and DVD media well into the digital age. This positioning underscored its role in democratizing home entertainment for underserved populations, where streaming services like struggled due to slow connection speeds below the FCC's standard of 25 Mbps download and 3 Mbps upload (as of 2015). The chain's presence fostered social and communal experiences tied to , particularly during the VHS and DVD eras. In rural settings, Family Video stores served as local hubs, offering free children's movie rentals and grade-based discounts that encouraged family-oriented viewing. These initiatives, alongside community events like bake sales and charity fundraisers hosted in stores, helped cultivate traditions such as family movie nights, where physical rentals provided a tangible, shared ritual in areas lacking alternative entertainment options. By maintaining personal customer relationships—such as staff knowing patrons by name—the stores reinforced a in small towns, contrasting with the impersonal nature of emerging online platforms. Family Video's endurance garnered significant media attention, highlighting its improbable survival amid industry disruption. A 2017 article detailed the chain's backstory and the majority owner's estimated net worth of over $400 million, driven largely by real estate holdings valued at up to $750 million, with the video business's 90% contribution to $450 million in annual revenue. This coverage portrayed the company as a resilient , adapting through cost-effective operations and a focus on physical media in overlooked markets, which captivated audiences interested in tales of corporate tenacity. As streaming services proliferated, Family Video symbolized the broader transition from physical rentals to digital on-demand access, with its 2021 closures marking the definitive end of the brick-and-mortar video rental era. The chain's demise, accelerated by the pandemic's impact on foot traffic, evoked widespread nostalgia for the tactile joy of browsing shelves and the of discovery, elements largely absent in algorithmic streaming recommendations. This shift not only signified technological evolution but also the loss of a that had shaped generations' engagement with film and television.

Economic and Community Effects

Family Video's economic footprint was substantial during its operational peak, driven largely by its parent company Highland Ventures' strategic ownership of assets. In 2017, estimated the value of the chain's real estate holdings at up to $750 million, which underpinned nearly 90% of the parent company's $450 million in annual revenue at the time. These properties, often located in underserved markets, provided a stable asset base that allowed the company to sustain operations longer than competitors amid the shift to digital streaming. The chain's employment contributions were significant, particularly in regions with limited retail opportunities. At its height, Family Video employed more than 7,000 people across its network of stores, many situated in small towns and rural areas where such jobs filled critical gaps in local economies. These positions ranged from store clerks to managers, offering entry-level work that supported family incomes in communities lacking diverse employment options. Beyond direct jobs, Family Video stores served as vital social and economic hubs in small towns, fostering community interactions and local commerce. In areas with few entertainment venues, the stores functioned as neighborhood gathering spots where residents browsed rentals and engaged socially, contributing to a and routine economic activity. Their closures in 2021, accelerated by the , created noticeable local economic voids, as seen in places like where the loss of these anchors affected nearby businesses reliant on foot traffic. The chain's wind-down amplified these effects through inventory and subsequent . Starting in January 2021, all remaining stores initiated everything-must-go sales of DVDs, video games, and fixtures, generating short-term revenue boosts but ultimately leading to the elimination of about 1,200 jobs nationwide. In the aftermath, many properties were for other retail uses, such as franchises, helping to mitigate long-term vacancies but not fully offsetting the immediate community disruptions from the sudden absences. As of 2025, Highland Ventures continues to leverage its real estate assets, including subleasing to franchises like , sustaining economic activity in former store locations.

References

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