Unique business plan keeping Family Video afloat - WAOW - Newsline 9, Wausau News, Weather, Sports

Unique business plan keeping Family Video afloat

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MARATHON CO. (WAOW) -

A popular video rental chain is still thriving, despite many people switching to online video streaming options.

"Renting is not as enticing as it used to be," said Larry Ciriacks of Wausau.

Family Video runs about 800 video rental stores nationwide, including more than 60 in Wisconsin.

Store managers say Family Video's success is all thanks to a unique business strategy.

They say the company isn't surviving by renting movies but is surviving by renting space.

"We own about 90 percent of our locations," said Jared Dawald, the manager of Family Video in Wausau.

Former competitors, like Blockbuster, only leased their properties.

Managers say Family Video buys and develops buildings and land, expanding the business beyond just video rentals.

"It allows us to exponentially grow and bring in the main source of our revenue," says Dawald.

Dawald says the Family Video in Weston is an example of that business model.

He says Family Video owns this entire property, not just the rental store, but also where the Great Clips and Papa Murphy's Pizza are located.

He says those two stores pay rent back to Family Video.

Family Video Director of Real Estate Sam Stilp says the chain has about 500 third party tenants.

Stilp says those renters generate about $11 million in revenue.

"The real estate has really become the biggest component within the success of the company," said Stilp.

Family Video also has a partnership with Marco's Pizza, owns a small chain of fitness centers and a cable company based in Illinois.

Area managers say those other ventures are why they're still hiring.

"We're looking for managers and employees to fill those voids," said Dawald.

With it's unique business plan, workers say Family Video is becoming more than just a community store.

"It's not going anywhere, we'll be here for a long time to come," said Dawald.

The Family Video Real Estate Director says the chain plans to continue to buy other rental spaces.

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