Local Video Stores Fight to Stay Alive

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Brick and mortar video stores are in danger.

They not only have to fight the convenience of mail delivery rental services, but also digital movie transfers, as well as the low prices of DVD dispensers. So perilous is the video rental industry that IBISWorld, a market research company, ranked it in October 2011 as one the ten riskiest U.S businesses.

Making a buck has never been as hard as it is now for these businesses, as they struggle to both keep and gain clients in a market that is based on bargain prices and convenience.

“Kids can now download movies and have no need for the DVD,” said Olegario Estevez, manager of 20/20 DVD store on Tweedy Boulevard. The shop is part of a chain that had several branches throughout Los Angeles, but now only operates a handful, according to Estevez. “They don’t need to drive [here].”

The expediency of Internet services is seen as an almost insurmountable source of competition by most traditional video stores. This inevitably forces small chains and independent stores to cut prices as far as possible to entice customers. 

“People usually just focus on the price,” said Estevez. At 20/20 DVD customers can rent the DVD of a just-released movie for $1.45 cents per night, while older movies will fetch 99 cents per night.  “If they don’t like the price, they will go elsewhere.”

Pricing can ultimately be the reason why people use a store or service over another. For some customers, a concern over membership fees and internet access can tilt them towards traditional video stores.

“You need Internet access to have Netflix and we had to cut back on that,” said Glenda Say, 29, when asked why she had not gone digital, as she returned a movie to Vany’s Video and Music on Long Beach Boulevard.

The additional monthly fees of online streaming services would be another expense that Say and her husband could not currently afford, she said. Say added that the freedom to pay as you go for individual movies is a better option for their current household budget.

“We like to see movies when we want to,” said Say.

The continuous lowering of prices can cause problems for the functioning of a business. Profits are difficult to achieve with this model, which would require large sales and continuous renting. As a result, small video stores usually can barely afford to pay for their day-to-day operations.

“We can afford to put food on the table,” said Maria Garcia, co-owner of Vany’s Video and Music, who added that the money that the business makes can pay for immediate expenses, but does not give her the capital to help it grow. “There is not enough [business] to save [money].”

Vany’s Video and Music had its golden age from the early to middle 2000's. At that time, they could afford to employ five full-time employees because business was going very well.

Now, commerce is 40 percent of what it was during those busy years, she said. As a result, the store operates with only Garcia and her husband working full-time.

“I do not know what is it that keeps us afloat,” said Garcia, when asked about if whether it was rentals or purchases that kept her business going.

In Lynwood, Juan Hernandez, owner of Leader Video, has been fighting to stay alive by varying up what he sells.

"In addition to renting and selling movies, I also sell candy, sodas and even electronics," said Hernandez, who opened his store in 1985.

Diversifying his products, he said, is what has kept his store alive.

Despite the digital revolution, there are some movie watchers who will always make a trip to their local video store. These patrons like the experience of holding and looking for a DVD.

“I prefer to take my time and visit a video store,” said film buff Juan Barajas, 45, who had already spent close to an hour roaming 20/20 DVD for interesting titles.

This afternoon he settled his search by purchasing copies of Philadelphia, Doubt and Un Acto de Fe. “I am very precise and like to choose movies with my own hand,” he said.

Cristina De Leon-Menjivar, editor of Lynwood Patch Latino, contributed reporting to this story.