Tower Records/Video To Drop VHS Rentals But Rent DVDs

In another sign that DVD is fast-growing, though still a relatively small market with roughly 2 million DVD-Video players installed in U.S. homes now, Tower Records/Video is shifting from VHS rentals to DVD rentals. The 110-store audio-video national chain will be renting DVD in more stores than VHS beginning the end of September. Tower will eliminate VHS rental departments in 18 stores, leaving only 35 locations with VHS rentals. Already some of the chainís stores rent DVD exclusively. According to John Thrasher, the Vice President of Video, DVD rentals are more attractive due to customer demographics and the fact that it isnít necessary to carry a large catalog of titles. Instead Tower will focus on new releases.