DVD, Game & Video Rental in the US: Market Size, Businesses & Forecast 2026

The DVD, Game & Video Rental industry in the US encompasses establishments primarily engaged in renting physical prerecorded video discs, tapes, and video games through brick-and-mortar storefronts, mail-order subscriptions, or automated self-service kiosks. The industry has experienced a severe structural contraction as consumer preferences have overwhelmingly shifted toward digital streaming platforms and direct electronic sell-through. The commercial footprint of the sector has shrunk dramatically, highlighted by the absolute dissolution of the country's largest automated kiosk network following a Chapter 7 liquidation order by the United States Bankruptcy Court for the District of Delawa

Industry snapshot

Key public data points

Historical & forecast

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What does the DVD, Game & Video Rental in the US industry cover?

The industry comprises entities that provide short-term access to prerecorded visual entertainment media and interactive software in exchange for a rental fee or subscription model. Operational methods traditionally span walk-in physical storefronts, specialized vending machines, and direct-to-consumer mail services. Activities strictly exclude the retail sale of permanently owned media discs or the licensing of online digital streaming architectures.

• •Covers the rental of physical media formats including DVDs, Blu-ray discs, and console-compatible video games.
• •Includes automated optical disc rental kiosks placed inside third-party commercial storefronts.
• •Excludes digital video-on-demand (VOD) and internet-based streaming services.
• •Classified explicitly under the North American Industry Classification System to capture consumer goods rental activities.

Who operates in the industry and how is it structured?

The industry's landscape has transformed into a highly fragmented ecosystem composed almost entirely of independent, localized specialty stores after the total collapse of major national networks. Major retail footprint contracts have eliminated regional corporate operators, transferring market presence back to boutique specialty outlets or community-focused libraries. These surviving entities often survive by cross-merchandising alternative consumer items like physical books, vintage apparel, or novelty items.

• •Independent operators function as single-store operations catering to neighborhood markets.
• •National automated kiosk structures have been completely removed from the retail landscape.
• •Remaining physical operations rely heavily on sub-leasing space or operating dual-concept retail spaces.
• •E-commerce distribution for physical media has consolidated into a singular mail-order operation.

What drives demand in the industry?

Consumer demand within this sector is driven primarily by affordability, physical product accessibility, and specific historical preservation preferences. A significant portion of ongoing demand stems from rural or underserved geographies where reliable broadband internet access is physically or economically unavailable. Additionally, cinephiles and media preservationists drive traffic due to exclusive bonus features and uncompressed audio-visual fidelity missing on streaming feeds.

• •Broadband infrastructure limitations in remote areas preserve a baseline necessity for physical media formats.
• •Discretionary pricing models provide alternative entertainment access without recurring digital commitments.
• •Incomplete digital licensing catalogues compel enthusiasts to seek out physically archived titles.
• •Hardware compatibility among aging consumer electronics sustains ongoing consumer utility.

Who are the notable companies in the industry?

The competitive playing field has witnessed a complete exit of major legacy public players due to intense technological displacement. The definitive exit occurred during the July 2024 Chapter 7 bankruptcy conversion and ultimate asset auction of the country's primary kiosk operator, which permanently disabled over 24,000 automated locations. The remaining operational landscape consists of a few specialized corporate brands, alongside surviving localized chains or independent single-store venues.

• •Redbox Automated Retail, LLC permanently ceased all operations and liquidated its entire kiosk asset pool following a 2024 bankruptcy order.
• •Netflix Inc. officially closed its legacy DVD-by-mail service, shipping its final physical red-envelope discs in September 2023.
• •Family Video, historically a massive brick-and-mortar presence, completed the closing of all remaining physical storefronts in 2021.
• •Surviving regional or niche brand footprints include operators such as Video Universe, Scarecrow Video, and Casa Video.

What are the recent trends and outlook?

The overriding industry trajectory is one of systemic obsolescence, with physical rental infrastructure facing near-total replacement by online content ecosystems. The final phase of corporate consolidation ended abruptly with the total liquidation of the market's remaining nationwide physical network, throwing thousands of machines into scrap processes. Moving forward, the industry is projected to survive solely as a cultural artifact managed by non-profit entities or highly specialized collector shops.

• •Over 24,000 automated rental kiosks were shuttered permanently across retail partners like Walmart and Walgreens in mid-2024.
• •Major Hollywood studios have systematically reduced the manufacturing volume of physical disc titles.
• •Non-profit conversion models, such as Seattle's Scarecrow Video, represent the evolving blueprint for physical media archives.
• •Consumer electronics manufacturers are phasing out physical disc drives from modern consoles and players.

How is the industry regulated?

Operators must comply with strict commercial rental rights, corporate bankruptcy oversight laws, and localized commercial leasing statutes. The disposal of physical industry capital is subject to rigorous environmental compliance frameworks and waste handling regulations due to the heavy volume of electronic components. Furthermore, structural shutdowns require careful navigation of contract labor laws and local court liquidations.

• •The United States Bankruptcy Court for the District of Delaware supervised the Chapter 7 asset liquidation under Case No. 24-11443.
• •Commercial entities are subject to strict copyright laws governing public performance vs. private home-use rentals.
• •Kiosk hardware disposal requires adherence to state-level Electronic Waste (E-Waste) Recycling regulations.
• •Operators face breach-of-contract and commission liabilities under commercial real estate agreements when vacating spaces.

Government, statistical and trade sources used for this Claight analysis.

• United States Bankruptcy Court for the District of Delaware 2024 ·
• U.S. Census Bureau North American Industry Classification System 2022 ·
• Securities and Exchange Commission Public Company Filings 2024