Hollywood Video's parent company has been unable to handle competition from Redbox, Netflix and Blockbuster, and has now been forced to close all of retail stores in the United States.
Movie Gallery, which saw its Hollywood Video chain fall into obscurity, believes liquidating all Hollywood Video stores is the only option. Since 2007, this marks the second time Movie Gallery has filed for Chapter 11 bankruptcy protection, which first happened after merging with Hollywood Video.
Prior to the merger, the companies were the No. 2 and No. 3 rental movie store chains trailing behind Blockbuster.
Around 1,300 Movie Gallery stores will be closed, including Movie Gallery and Game Crazy in addition to the Hollywood Video locations.
Brick and mortar rental companies have struggled against the constant innovation of the consumer movie industry, as rental kiosks, mailed movies and streaming services take over. Both Netflix and Blockbuster have entered the streaming market, but Hollywood Video has lagged in innovation even more than Blockbuster.
Blockbuster has also struggled in the current industry, with the company again saying it may not be able to withstand pressure from numerous competitors.
I'm honestly surprised that Hollywood Video has lasted this long -- it's been years since I've heard good news from the company. Furthermore, I have 10 Hollywood Video locations within 40 miles of my house, and all but one of them is closing (according to the Hollywood Video Web site). If you look at the store locator, you may be able to find a location nearby that is offering "savings storewide."
