Even with the growing popularity of DVD kiosks, online rental services like Netflix, and satellite movies on demand, managers of local DVD rental stores say their business shows no signs of dying off.

“We’re actually doing really well and have not noticed anything different here due to the economy, kiosks or online services,” said Loni Wood, manager of Hollywood Video in Tooele. “We have a lot of good, loyal customers come in, and we also get a lot of new ones in here as well. Nights are usually when we’re the busiest.”

Tooele County overall seems to be bucking a national trend in continuing to patronize walk-in video stores. According to Toronto-based Convergence Consulting Group, in 2007, 71 percent of DVD rental revenue in the United States came from in-store rentals; 25 percent came from mail rentals; 4 percent from kiosks; and 1 percent from direct online viewing. However, the group’s researchers predict in-store rental revenue will account for only 44 percent of movie/TV rentals by 2010, with mail rentals from Netflix and other services accounting for 37 percent. Rentals through kiosks will make up 11 percent of all rental revenue, and online rentals will account for 7 percent.

Wood thinks personalized customer service and movie-watching treats for sale have helped rental outlets like hers stay competitive in Tooele.

“We know how to make people feel right at home here, and we also do good sales with our candy, popcorn and soda all the time,” she said. “A lot of people also don’t really know what they want at first, so they want to go to a place where they can ask someone if they’ve seen a movie or if it’s good. That’s something you can’t get from a DVD kiosk. People like that one-on-one, personal interaction.”

Two DVD rental suppliers in Grantsville — Williams Video and Variety, and Soelberg’s Market — both also say they have shown no signs of decreasing business. Salena Clark, manager of Williams Video and Variety, said her store also has a strong clientele renting its old VHS tapes, which went out of production almost two years ago.

“We do still carry old videos, and those rent out well with people who only have a VCR or may want a film that hasn’t been transferred to DVD,” she said. “Plus, even though some of our customers have switched over to Netflix and other online sites, there are always new people moving in who are coming in to us. There are people who may also wait for a movie to come out on DirecTV on Demand or similar cable programs, but they will mainly only show the newer films. People who want to see older films will still come to us.”

Clark said DVD rental stores also usually keep a better eye out for scratched DVDs that may come back into the store.

“People have had problems with Netflix or Redbox because of the DVDs being scratched or broken,” she said. “The company doesn’t always check to make sure. You could call them up and tell them, but they’re not going to come out right then and there to replace your DVD.”

Mardee Clayton, manager for the guest service department at Soelberg’s Market, said that even though Soelberg’s has both a DVD rental section and DVD kiosk, the rental section still does good business. She said several people come to the store for older films they can’t find at the kiosk.

"We haven’t seen a drop in rentals at our store because it has a much bigger variety than our ‘DVD Now’ kiosk, which only carries newer releases,” she said.

Clayton said she predicts people will continue to go to a store to rent DVDs out of habit, convenience and affordability.

“Getting movies through cable or online is nothing brand new, so the fact that our store is still doing well proves that people still like to go out and rent their DVDs,” she said. “Plus, there are still a lot of people out there like me who don’t have cable television, and the only way they can see anything besides what’s on their TV is through renting a DVD. I’m sure a lot or people rent DVDs just because they’re old-fashioned, and it is less expensive than having to pay for a monthly cable bill.”

Because her store is one of the few DVD stores in Grantsville, Clark expects that Williams Video should be around for awhile.

“Local residents will usually go to us first, then to Soelberg’s, and then on to Tooele if they can’t find an exact DVD they’re looking for,” she said. “People want to go to the closest place first when they rent DVDs.”

Wood said there is still potential for an independent store to hold its own against the “big guys” like Blockbuster or Hollywood Video.

“It may be harder for them because the big places do more advertising and have a bigger selection, but as long as an independent place also has a good DVD selection, they could definitely make it,” she said.

Both Clark and Clayton have said they don’t see their stores setting up online DVD rental Web sites anytime soon.

“Our business here at Soelberg’s is mostly focused on grocery, so we’re mostly here so people can rent a DVD while they’re shopping for food,” Clayton said.

Doug Radunich: dougrad@tooeletranscript.com