Video store owners finding it hard to compete with technology



Published on September 1, 2011
Published on September 1, 2011
Amy Reusch  RSS Feed
Topics :
Blockbuster Canada , Wal-Mart , Grant Thornton , PICTOU , Canada , Abercrombie Road

PICTOU – The days of going to a video store and perusing the shelves for movies have been declining steadily over the years. With the recently announced closure of Blockbuster stores across Canada some local movie rental shops are wondering what their future will be.

Bruce Levy opened Abercrombie Video in the early 1980s across from his convenience store on Abercrombie Road. His VHS collection had over 10,000 titles, hand selected and watched by Levy.

“Business was great before,” said Levy. “There was more profit, no Internet, no Wal-Mart or satellite TV.”

The shift to DVDs affected Levy’s business. More people buy movies today or download them rather than rent. When DVDs became the medium to watch movies, it would have cost Levy $250,000 to replace all his movies he had on VHS.

In 1994, as Levy’s rental business began to decline he moved his convenience store in with his movies to save money.

Susan MacDonald, who owns the Video Nook in Pictou, also has a convenience store with her rental business, which was part of the building when she moved from downtown to Welsford Street. MacDonald said the food and candy have helped keep her business afloat.

“You can’t complete with the technology,” she said, adding that people still rent movies but movie sales have declined.

Recently the Video Gallery at the Sobeys plaza in Pictou closed its doors.

“There wasn’t room for both of us,” said MacDonald. “There was room for one of us to survive.”

Levy said with more and more people watching movies online they are missing out on the social aspect of going to your local store and maybe running into a friend or neighbour.  

On Wednesday, it was announced that Blockbuster Canada will close its remaining 253 stores across the country. In June, 150 stores were closed in an attempt to deal with declining sales and its new ownership by U.S. Blockbuster, which left its Canadian counterparts in debt. Currently there are more than 2,300 people employed at Blockbuster.

The Blockbuster in New Glasgow declined to comment on the pending closure and directed The News to Grant Thornton, Blockbuster Canada’s receiver. At press time calls to Grant Thornton had not been returned.

Comments

  • Username
    the shadow
    - September 2, 2011 at 11:29:32

    Paradigm shifts come in , the aware make fortunes and then they get out before the next paradigm shift replaces the first one. Sobeys used to have a video rentals section and a video distribution company. Both those Empire operations ended with Blockbuster renting Crombie Reit properties. Wayne Huizenga the builder of Blockbuster was first the builder of Waste Management. He made his fortune with Blockbuster and once owned the Florida Panthers , Marlin and Miami Dolphins. He was bought out by Viacom at least 15 years ago. If local small businesses cant pick up on the industry they are in then don't complain because you are nowhere's near as smart as the once industry leaders. Entertainment is now delivered to the home with practically anything one would want.

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  • Username
    rent cheaper-movies
    - September 2, 2011 at 09:25:14

    Look, it's a tough economy, people are gouged at the gas-pump, the grocery store, the bills, so why can't movie rental stores charge less on cheap dvd's they'll make their money on over and over again? Levy's store's like a graveyard of media...he's never parted with any of it cheaply...there was a game I was interested in (old), it was offered for 'like new' condition price. Just saying...

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  • Username
    Sad
    - September 2, 2011 at 09:24:08

    Not a fan of Block Buster but enjoy the experience of going to a video store and browsing their selection. I will make a point of going to Abercrombie every week and give them my business. Lots of great memories of Abercrombie, Pioneer and New Glasgow Video growing up. Not into the downloading stuff myself.

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