For almost two years, University real estate officials have been trying -- unsuccessfully -- to bring a major video store to campus.
Responding to student demands for an alternative to the often-criticized Video Library, Penn has tried to negotiate deals with Blockbuster, Hollywood Video, and the Philadelphia-based TLA Video.
Now, after Blockbuster failed to open a store on Penn's campus, the national chain has set up shop at 48th and Pine streets, much farther than most University students are willing to walk to rent a movie.
John Greenwood, a top official at the University's real estate company, said negotiations with the video stores fell through mostly because of conditions within the rental industry, not due to problems with Penn's location.
"We were in negotiations with Blockbuster last year and based on what we heard through those discussions and the kind of deal they wanted to make, we decided to pass on it," Greenwood said.
"The rental video businesses wanted some fairly one-sided outs relative to the deal," he added.
But Barry Sosnick, a research analyst at investment bank Fahnestock and Company, said the video rental industry is not inherently unstable now.
"The industry is actually in a great position," he said.
Derek Bain, a media researcher for Kagan World Media, agreed but said that the industry wasn't doing as well last year when Penn was in negotiations with the rental companies. However, Bain also said Blockbuster is among the only financially healthy chains.
"There's been a lot of bankruptcy," he said. "Blockbuster and Hollywood are really the only ones doing well."
Blockbuster Corporate Sales Representative Blake Lugash declined to comment on Blockbuster's negotiations with the University but said he thinks Penn students will use the new store even though it is not on campus.
"We hope the Blockbuster brand drives traffic to our stores," Lugash said. At 48th and Pine streets "we're able to serve not only the Penn community but the surrounding areas also."
But Greenwood said the store, unfortunately, does not cater to the University market.
"That Blockbuster clearly serves a more western community," he said.
While most students had not even heard of the new Blockbuster location, reaction was mixed as to whether or not they would use it.
Several, like Wharton junior Brian Larkin, thought the store was too far away.
"It's too far, first of all," Larkin said.
Others, however, thought the nationwide chain would be an improvement over the only video rental on campus.
"I would definitely use it," College sophomore Ken Lau said. "It's definitely an alternative to the Video Library. I think Blockbuster would be better because it's more modernized.
"I only went [to the Video Library] a couple times and it was alright," he added. "I just don't like the fact that you have to return the video the next day or they charge you extra."
The Video Library, located at 4040 Locust Street, has also prompted student complaints because of its short hours and limited selection. Its owners agreed last October to keep the rental open for longer hours to accommodate student demand.
Employees at Video Library said the new Blockbuster has not affected business thus far.
"We thought it was going to hurt, but it really hasn't too much," store manager Jen Rogan said. "Business hasn't slowed down."
And despite the apparently succesfful opening of a video store eight blocks west of campus, Penn Executive Vice President John Fry said any plans for bringing a major chain to the University are currently on hold.
"I think it's on the back burner, just because of that industry," he said. "There's a lot of those companies in transition now.... The last thing we want to do is to sign a lease and then have them pull out."
