OWENSBORO, Ky. -- Long sought after as an industry benchmark, the National Association of Video Distributors here and the Video Software Dealers Association, Encino, Calif., released last week the first-ever video-storefront census counting video-rental outlets in the United States. Supermarkets accounted for about 25% of the total video-rental units counted.
Arthur Andersen, the Chicago-based national service firm, conducted the census and determined a total of 27, 882 video-rental storefronts existed as of November 1999, not counting those supplied by sub-distributors. The storefronts counted included those that offer more than 100 copies of motion pictures for rental. The count was derived from locations supplied by the nine members of the NAVD, which represents all U.S. video-distribution companies.
The firm estimates that 19,837 locations, or 71.1%, derived 50% or more of their total revenues from video and DVD rental. Of the 8,045 remaining locations, or 28.8%, which derive 50% or less of their total revenue from video and DVD rentals, about 90%, or 7,240, were supermarket video departments, according to analysts.
"[The results] weren't outside the numbers that have been kicked around for a number of years in the industry," said Bill Burton, NAVD executive director.