In 1946, Clarence Hoogland founded Midstates Appliance and Supply Company. His son Charles Hoogland inherited the business in 1953. The company later became a distributor for Magnetic Video. After getting stuck with a large inventory of excess video movies in the late 1970s, Charles had the idea to start the Video Movie Club in Springfield, Illinois in 1978. The club originally charged a $25 membership fee and $5 per rental and later evolved into Family Video. Because Blockbuster's main focus was larger cities, Family Video decided to establish themselves mostly in rural areas, suburbs, and small and midsize cities instead. In 2003, Family Video relocated its headquarters from Springfield to Glenview, Illinois. By 2013, Blockbusterclosed almost all of its remaining stores. By the end of 2016, Hastings Entertainment liquidated, making Family Video the sole-surviving video rental chain in the United States. In addition to the brick and mortar store front, Family Video has branched off into other markets such as real estate, 24-hour fitness centers, cell phones, and cable television. The company also sells new and previously used items online. Family Video expanded into the Canadian market in 2012. In 2013, following the continued decline of competing video rental stores, Family Video formed a partnership with Marco's Pizza providing space for the franchise in many of its stores. The company is using the partnership as a way to deliver video rentals with pizza orders. Family Video also leases space to other retailers such as hair salons and fitness centers. Unlike much of its competition, Family Video owns the real estate housing their stores, helping them to avoid unsuccessful lease negotiations that led to the demise of Blockbuster and Movie Gallery, which includes Hollywood Video. And rather than depending on the revenue-sharing model used by others in the business, the chain buys and owns their movies, allowing them to keep all the rental profit. In addition, it owns a fiber-optic network in the Central Illinoisregion, called iTV-3, as well as a small chain of fitness centers named StayFit-24.
