Beta Tapes Are Fast Disappearing From Video Rental Scene

The chance to rent or buy a video on the Beta format, it seems, is going, going . . . almost gone in the San Fernando Valley.

When “E.T., the Extra Terrestrial,” was released on videocassette in October, it was expected to be a monster hit in tape sales and rentals. And it was.

Music Plus, for example, with 59 stores in the Los Angeles area, estimates that it sold 50,000 copies of “E.T.” on VHS--but only 500 in Beta. Other outlets reported similar numerical disparities.

As of January, 90% of the about 200 video movie rental stores in the Valley carried only VHS tapes, an informal telephone survey of 60 stores showed, and those that carry Beta say they purchase only the hottest movie blockbusters.

The Wherehouse, with 10 stores in the Valley, still has Beta rentals in nine, but carries only 20% of its titles in the format, and Tower Records and Video, with three stores in the Valley, has pulled out of the Beta movie rental and sales market completely. Smaller mom-and-pop shops follow similar patterns, with many spelling out that they are “VHS only” in their advertisements.

The Fantasy Castle in Woodland Hills carried both formats until March. “I couldn’t even remember the last time a customer rented one,” said employee Josh Rudman, adding that of the 5,000 tapes stocked at that time, only 10 were Betas.

“We were just losing money on Beta,” said Tower’s John Thrasher. “The return of the revenue on the purchases just didn’t make it. It was a dead format.” But when the company pulled the plug on Beta sales in August, it still had 40,000 tapes on hand.

The answer for Tower was a series of “Beta Blow-Out” clearance sales--Thrasher said a final one may occur in the near future--with tapes selling for as low as $5.99. When Music Plus, which is phasing out its Beta rentals, had its “Beta Blow-Out” in October, company officials estimated that they sold 20,000 copies.

Both Music Plus and the Wherehouse are still buying limited quantities of Beta for rental.

“We order the ‘A’ titles--’Three Men and a Baby,’ ‘Red Heat,’ ‘E.T.’--on Beta,” said Music Plus’ Mitch Perliss, explaining that of the 40 to 50 January releases on his stores’ shelves, only six to eight will be on Beta. “We’re phasing down monthly, getting out store by store. It would surprise me if we had Beta by this time next year.”

Despite reports to the contrary, a Sony spokesman said the company is continuing to manufacture Betamax machines, and almost any video movie rental store will special order a new movie on Beta. But it’s strictly on a sale basis only--no rentals.

Ralph King, vice president of marketing for the Wherehouse, said that although Beta rentals make up only 3% of his firm’s market and the purchase of new releases has been considerably restricted, those stores that do well in the format will continue to be supplied for the time being. “We have substantial inventory in Beta that is in the stores now, and we’re not going to do a wholesale pullback.”

Independents report similar market erosion for Beta.

The Video Revolution in West Hills has seen its Beta rentals slip from 11% in June, 1985, to 4% today, but store manager Mike Bierman says he will continue to buy Beta rental tapes of the box office biggies, even if they are slow movers, as long as there is a market for them. “We ordered 15 VHS and one Beta of ‘Red Heat,’ and still that single Beta won’t rent everyday,” he said.

The Other Channel still does one-third of its business in Beta, said Cassandra Gowdy of the Canoga Park store. The store orders five VHS copies for every Beta, but tries to stock every movie title in both formats.

Some store managers said that when a Betamax owner gives in and finally buys a VHS machine, the old Sony isn’t junked, but is passed to other family members who, in turn, continue to rent tapes.

“Many people received a VHS machine for Christmas and passed the Beta down to their kids, so we get new customers all the time,” Gowdy said.

Some Betamax owners hold on to their machines so they can rent the latest in-demand video release. “It’s a way to get a copy when you couldn’t possibly find it in VHS,” Bierman said.