Video Industry Hoping to Avoid Rerun of Last Year

FT. LAUDERDALE, Fla. — The home video industry would like to avoid a rerun of last year.

After a decade of rapid growth, rental activity slipped for the first time in 1991, largely because of the recession, lackluster releases and the Persian Gulf War’s effects on television viewing habits.

Rental volume dropped by about 10% from 1990, while revenue fell 8%. Video purchases, however, were higher.

This summer, the industry is hoping for a comeback in rentals from a string of movie hits such as “JFK,” “Hook,” “Cape Fear” and “The Addams Family” due out on videocassette.

At the same time, the industry giant, Ft. Lauderdale-based Blockbuster Entertainment Corp., is working to expand its product line here and overseas while staying ahead of competing technology in cable TV, including pay-per-view channels.

“It is still product driven, this business,” said Steven Apple, executive editor of Video Insider magazine. “If Hollywood has a bad year, we will have a bad year. (And) when a big title is advertised on TV, the public tends to go to their video store.”

Consumers have been steadily flocking to video stores since the early 1980s.

Revenue from video rentals hit $10.2 billion last year, while purchases reached $4.6 billion, far outpacing the $8.9-billion book business and the $7.5-billion music industry.

Blockbuster remains the undisputed industry leader with about 2,800 stores worldwide and a 13% market share of all U.S. rentals, larger than its 300 biggest competitors combined.