Monday, May 3, 2010

The Rental is Dead ...

Source: Home Media Magazine

Long live the rental!

Movie Gallery and all of the companies that they control, such as Hollywood Video, will be shutting down over the course of the next couple of weeks followed by an indefinite liquidation sale. Across the nation the rental giant and over 2,600 stores employing over 19,000 people will be no more.

The company, after filing for bankruptcy for the second time, was still in the red at $540 million. There are several possible reasons why Movie Gallery was not a successful as other rental companies such as Blockbuster, Netflix or Redbox the most significant being that they liked to play it old school in a digital age. They offered no download, mobile, mail or kiosk systems that have allowed it's competitors to stay afloat.

It was a case of adapt or die, and Movie Gallery will sadly be listed among the latter.