Big in S.D., Video Library Dwarfed by National Chains

Video Library, with $12.2 million in 1986 revenue, is the nation’s largest publicly held, non-franchised video rental store chain.

But the San Diego-based company is dwarfed by the nation’s large franchise video operations.

Springfield, Va.-based Erol’s led the nation in 1986 with $147 million in revenue, and Portland-based National Video will generate about $100 million in rental and retail revenue for the fiscal year ending March 31, according to Santa Ana-based Video Store Magazine.

In addition to “mom and pop” video rental shops, Video Library increasingly is competing against large record chains--such as The Wherehouse and Licorice Pizza. Consumers now can rent videos at convenience stores, such as Dallas-based Southland Corp., which is introducing video rentals at most of its 8,347 7-Eleven outlets.

Video Library could opt for faster growth through franchising, but founder and chairman Barry Rosenblatt believes that would lessen quality control.

By sticking to its company-owned policy and concentrating on the San Diego market, Video Library can “centralize its advertising and management structure,” said Leslie Grey, executive editor of White Plains, N.Y.-based Home Video Publisher. “That way they don’t have to spread themselves too thin.”

However, even in San Diego, Video Library is competing in a market where “stores are becoming larger and larger . . . (and) more convenience stores, supermarkets, gas stations and non-traditional outlets are offering titles,” Grey said.