At Melbourne's last video rental store, physical media never died

It feels like the 1990s.

Warm light, small groups, rows of titles, stacks of discs, a clacking of a case closing, and a giggle from the shopkeeper.

"You'll like this. Enjoy," smiles Rex Rekhi, finalising a sale during a Friday lunch time rush at his store in the middle of Melbourne's CBD.

His shop is filled with thousands of movies on DVD as well as CDs and vinyl albums nowadays known as physical media.

Mr Rekhi believes physical media is enjoying a resurgence and that young people are driving the wave.

"Ten years ago, the average age of people walking in here were, 40, 50, 60. Now [its] 20 and 22, we are even getting teenagers," he said.

"And you go 'oh my God. You are buying classics from the 40s. How do you even know about this?'"

It is a far cry from 2013 when Mr Rekhi was considering shutting-up shop as streaming services took hold.

"At that time we were in freefall," he said.

"I was just saying 'give me the bottom'. If we hit a bottom I can work with that."

Lost in the stream and collectors of art

With customer numbers at Mr Rekhi's shop noticeably higher this year he frequently hears customers complain they are tired of streaming.

Young people are often coming in to buy their first hard copy of a film or album.

"After COVID, streaming was going well, but then every streaming service gave birth to two or three more … [and] you still don't have everything," he said.

"They are saying it is time to own something again."

Jarret Gahan, a long-time collector and cinephile, has a room full of beloved hard copies.

"I buy the films that I love," he said.

He is seeing more people with that feeling, especially with a cherished film or TV show, as streaming services scrap back catalogues.

Physical media can include bespoke features streaming does not.

He opens an A5-sized box containing the children's fantasy film The NeverEnding Story from 1984.

"Inside you've got the press kit for the film, lobby cards, production notes, five discs, including three Blue-rays with every special feature.

"It is a piece of art."

While big stores continue to limit their hard copy collections, Mr Gahan said small outlets were stocking unique physical copies and catering to a growing community of enthusiasts.

"Now we have all these boutique labels releasing stunning [hard copy] issues … curating newly created special feature content," he said.

Mr Gahan has a garage and closets packed with DVDs and VHS cassettes ready to sell locally and globally, including VHS cassettes from long-closed rental chains

"This morning I sold the 2002 parody movie Not Another Teen Movie on VHS. It is on DVD and Blue-ray but it obviously holds a nostalgic thing for [the buyer]," he said.

"And then I sold the Little Mermaid 3, a direct-to-video sequel to the [1989] Little Mermaid."

Mr Rekhi said something more was at play to account for the growing popularity of physical media.

"We are seeing people coming in as groups, talking about movies," he said.

Exiting the algorithm with shared experiences

That is evident at Melbourne's last DVD rental store.

The multi-level shop in Richmond has outlasted global mega-chains and is also experiencing a recent rebound.

"This is just good drama if you ask me," owner Derek de Vreugt tells a customer who is returning some recent hires and a holds a list of what's wanted now.

"You'll find it in cult and arthouse," he calmly advises.

It was also nearly end-credits for this shop, especially during COVID lockdowns, but is now seeing younger customers in the mix.

Some are after items they simply can't find on a streaming platform or have decided it's too expensive or confusing to have multiple subscriptions.

But the conversation and guidance while browsing also appears to be a factor.

"People do lists. Come in with lists. Like, 'I'm doing this actor'. They all have their Nicholas Cage moment … or 'what have you got by this director?'" Mr de Vreugt said.

"A few weeks ago people were doing a James Spader thing.

"While they are here they browse and get something unexpected. And maybe it's getting out of the house.

"[They're] going out, then watching a movie on a DVD [which] is more intimate, more special, more visceral. Maybe it is just human nature."

Mr Rekhi thinks the need to "own the experience" is key.

"There is something about putting on a CD or DVD that says, mentally, 'I am going to commit to this'.

"Streaming is convenient. I have streaming. But you don't get engagement from it.

"Here you come in, you get engagement.

"People are really enjoying the experience of cinema."