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How Berkeley's Last Video Rental Store Survived the Digital Apocalypse

Reel Video, Blockbuster and Video Maniacs — they’re all gone. So, how did Five Star Video manage to survive?

 

In recent years, all of Berkeley's video rental stores have fallen to the giant of online streaming, or else been replaced by automated kiosks. 

All except for one.

Figuratively, Andy Katz is the last man standing. He looked out proudly from behind the counter of Five Star Video on a recent weeknight as customers streamed into the the last video rental store in Berkeley.

The popularity and abundance of instant, online streaming services like Netflix and Zune, coupled with automated kiosks like Redbox, forced video rental stores to shut their doors — including Berkeley's Reel Video, Video Maniacs and even the national Blockbuster chain.  

Now, the local competition is out of the picture — save for Bombay Music, which only rents movies made in India — and Five Star Video is all that remains of a once thriving industry. Business is surprisingly good, said Katz, who attributes Five Star’s longevity over the years to something you can't get online — great customer service.

“Our customers seek the interaction with me and my staff," said Katz. "We can talk about all sorts of movies."

Although corporate online giants like Netflix dominate the video rental industry, Katz says people still seek the movie store experience because they want to browse and discuss movies with real people.

There is also a degree of nostalgia involved in the continued success of his business, said Katz.

"It’s like the theater in a way," said Katz. "There is some magic about coming to the video store."

 

Originally from New York, Katz came to the Bay Area over 30 years ago after graduating from business school to work for Chevron in San Ramon. He started visiting the Five Star Video on Solano Avenue to rent movies and relax, and eventually, Katz said, he became such a regular that the owner offered him a job devising an inventory database for all of the store’s titles.

Katz went on to buy the business from the previous owner, and even opened another store on University Avenue and Sacramento Street five years later. 

With his business background and experience in finance, Katz has been "able to watch the nickels and dimes" during his 23 years at the helm of Five Star Video, he said, and keep the business alive. The show goes on, and Katz isn't fazed by the latest trend. 

In fact, he said, long before Netflix began to cannibalize profits from independently owned video stores — there was Blockbuster. The national video rental chain scaled quickly in the late '80s and early '90s, consuming the new release market.

In response, Katz created a comfortable niche for Five Star Video by accruing older foreign and domestic films as well as independent films — the kind of movies Berkeley residents tend to rent.

“We have customers who come in and ask for some weird French movie and we have it,” said Katz. 

Five Star customer, Rob, who didn’t want to give his last name for this story, likened the video store experience to going to a bookstore. Here, he can hold the DVD case, read the synopsis, and make decisions on what to watch depending on what catches his eye.

For Kilimba Alvarez of Oakland, it was her first visit to Five Star Video. She said she usually rents movies from Netflix but forgot to add a newer release to her queue. She said she didn't want to wait the two days it takes Netflix to mail the DVDs to her house.

“Its nice to have a place you can walk into... and actually pick a movie up," said Alvarez.

How do you rent movies? Do you visit a video store, stream online or use a kiosk? Which do you prefer and why? Share your thoughts in the comments.

  • How Do You Rent Movies?

    (Voting has been closed for this question)
    • At a video rental store. (Where? Let us know in the comments)
        27 (56%)
    • I use an online streaming service. (Which one? Please tell us in the comments)
        11 (22%)
    • At an automated kiosk. (Where and why? Share your thoughts in the comments)
        2 (4%)
    • I download. (Why? Tell us about it in the comments)
        2 (4%)
    • It depends. (Please elaborate in the comments)
        6 (12%)
    Total votes: 48
  • This is not a scientific poll. View Results Vote!
About this column: An exploration of what the American Dream means in 2011. Related Topics: Blockbuster, Dispatches National, Five Star Video, Netflix, Online Streaming, Video Rental, and Video Stores

Michael Lee Clark

10:52 am on Tuesday, February 7, 2012

Five Star is located 8 blocks away from our family -- we generally rent once, twice a month (average sale is about $7.00/visit, 3 movies/visit) and can easily walk there in 10 minutes. We could rent movies from Comcast and their On Demand, but don't like giving extra revenue to this conglomerate. Best to support a local business when and where you can!!! This was a good story for Five Star.

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Fiona Wen

11:29 am on Tuesday, February 7, 2012

I love Andy and all his employees. Nicest people imaginable and always up for a spirited discussion of the latest movies. I have received terrific picks and pans from all and so enjoy the interaction. I certainly hope they stay where they are.

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Emily Henry

12:21 pm on Tuesday, February 7, 2012

I must say, I haven't been to a video store in a long time but I do miss it. Netflix and Zune can get overwhelming, and lately the star ratings on Netflix all seem to be the same... which doesn't help when you're trying to pick a movie. I usually end up searching online for reviews, and even then the critics can be wrong.

Human interaction is a big part of this debate. Can technology really replace face-to-face conversation?

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WW

5:52 pm on Tuesday, February 7, 2012

I love going to 5 Star and appreciate the staff's helpfulness, but also go to the Berkeley Main Library, which has a great variety of dvds.

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LAS

7:40 pm on Tuesday, February 7, 2012

We go to 5 Star! We love it. Not only do we find lots of movie and have good discussions with the employees, we always run into someone we know. It's the place to be!

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Kenneth Loretto

1:29 pm on Wednesday, February 8, 2012

I go to 5Star on University! I put Godfather 3 down on the counter awhile ago and the staff guy looked up at me and said, "Scorsese. Frankly, I don't know why he bothered." I like that place.

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Andy Katz

10:59 pm on Monday, February 13, 2012

Ken, at least Coppola got 2 out of 3 right. Yea, the third one sucks. Andy K.

Dan Brekke

6:37 pm on Thursday, February 9, 2012

We rent from Netflix, stream from Netflix, and still walk over to Five Star's location on University Avenue to pick up movies (current case in point: Try renting the Alec Guinness version of "Tinker Tailor Soldier Spy" from Netflix). Andy won us as customers the very first time we walked in (in 1988) and he ordered a VHS movie for us we could find nowhere else.

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Andy Katz

11:09 pm on Monday, February 13, 2012

Thanks to all of you for your kind words. I can always be reached at:
fivestarvideostore@gmail.com
"saving the world, one movie at a time"

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Joice

9:16 pm on Monday, March 19, 2012

I rent from Le Video in San Francisco. Since they have 7 nights rentals I mail back the movies unless re-renting again. Incredible selection well worth the drive! Amazing!

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