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Are Video Rental Stores Breathing Their Last Breath?

Recently, Apple announced their online movie rental service and I’m guessing a few video rental companies shook in their boots (not to mention, some movie studio execs). Whatever the industry feels about Steve Jobs and Apple stepping into yet another segment of entertainment (after iTunes), the fact is that a few previous video rental services (online and bricks and mortar) are either disappearing or being restructured.

For example, Movie Gallery Inc. is shutting down 400 stores in the U.S. on top of the 520 stores closed late last year. This move is part of their bankruptcy restructuring, so Apple’s new service didn’t force them into this. However, Movie Gallery is keeping open 3500 stores, and how they run those is probably going to be affected by whether consumers take to renting online.

With more consumers having the option of high-speed Internet access and unlimited bandwidth subscription plans, the possibility of a significant shift to online video rental is obviously there. However, Apple’s current setup isn’t anything that would satisfy me - particularly because you only have 24 hours to watch a video after you start watching it.

I may be old school, despite spending 60-80 hours online per week, but I prefer the tangibility of discs and tapes, as well as being able to rent a bunch of flicks on, say, a Friday night, scanning a few, then watching whenever I feel like over the weekend.

From what I understand, most online video rental services only allow you to rent out two or three videos at a time. And you have to wait until your selections arrive. If they arrive via courier, then your movie time is more predictable. If you had to rely on regular mail, forget it. I couldn’t handle that.

For me, video rental stores are preferable over online ordering or downloads. And for the present, I’m guessing that most video renters are the same. Though that doesn’t mean that the bricks and mortar side of the industry are not on their last legs. What do you think? How do you prefer to rent movies?