A video rental shop/store is a physical retail business that rents home videos such as movies, prerecorded TV shows, video game discs and other media content. Typically, a rental shop conducts business with customers under conditions and terms agreed upon in a rental agreement or contract, which may be implied, explicit, or written. Many video rental stores also sell previously viewed movies and/or new, unopened movies.
In the 1980s, video rental stores rented VHS and Betamax tapes of movies, although most stores dropped Beta tapes when VHS won the format war late in the decade. In the 2000s, video rental stores began renting DVDs, a digital format with higher resolution than VHS. In the late 2000s, stores began selling and renting Blu-ray discs, a format that supports high definition resolution.
Widespread adoption of video on demand and video streaming services such as Netflix in the 2010s sharply reduced the revenues of most major rental chains, leading to the closure of most locations. Due to the precipitous drop in demand, few rental shops have survived into the present day. As of 2022, the small number of remaining stores tend to cater to film buffs seeking classic and historic films, art films, independent films, and cult films that are less available on streaming platforms.
The world's oldest business renting out copies of movies for private use was a film reel rental shop opened by Eckhard Baum in Kassel, Germany in the summer of 1975. Baum collected movies on Super 8 film as a hobby and lent pieces of his collection to friends and acquaintances. Because they showed great interest in his films, he came up with the idea of renting out films as a sideline. Over the years, videotapes and optical discs were added to the range. Baum still operates the business as of April 2023 and was portrayed in the June 2006 documentary film Eckis Welt by Olaf Saumer.
The first professionally managed video rental store in the U.S., Video Station, was opened by George Atkinson in December 1977 at 12011 Wilshire Boulevard in Los Angeles.