ENCINO, Calif.--(BUSINESS WIRE)--The Video Software Dealers Association (VSDA) and its members are mourning the passing of George Atkinson, who is generally considered to have been the "inventor" of video rental. Atkinson died Thursday in Los Angeles. "From George Atkinson's innovation, a tremendous industry has developed," said Bo Andersen, President of VSDA. There are now more than 24,000 video stores in the U.S. In 2004, there were 2.6 billion DVDs and VHS cassettes were rented, generating more than $8 billion in revenue.

In the Fall of 1977, George Atkinson bought one Betamax and one VHS copy of each of the first 50 movie titles that were then being sold to the public. Announcing the availability of the videos for rent in a one-column-inch ad in the Los Angeles Times in December 1977, Atkinson launched the first video rental store, Video Station, a 600-square-foot storefront on Wilshire Boulevard in Los Angeles. In order to raise capital, Atkinson charged $50 for an "annual membership" and $100 for a "lifetime membership," which provided the opportunity to rent the videos for $10 a day. Atkinson was soon threatened with a lawsuit for renting the videos, but discovered that U.S. copyright law gave him the right to rent and resell videos he owned.

Atkinson subsequently headed the Video Station chain of video stores, which had more than 600 franchised stores at its peak. He retired from Video Station in 1997.

The battle to protect the public's right to rent videos was a major catalyst for the establishment of the Video Software Dealers Association in 1981.

"George did not set out to be the founder of an industry," noted Andersen. "Instead, he was an innovative retailer with some spunk. He got some sound advice about the right to rent under copyright law and withstood substantial pressure to cease and desist renting movie videos. In many respects he was a role model for the determined entrepreneurs who established the video rental business."

Established in 1981, the Video Software Dealers Association (VSDA) is the not-for-profit international trade association for the $24 billion home entertainment industry. VSDA represents more than 1,000 companies throughout the United States, Canada, and other nations. Its members operate more than 12,500 retail outlets in the U.S. that sell and/or rent DVDs, VHS cassettes, and console video games. Membership comprises the full spectrum of video retailers (from single-store operators to large chains), video distributors, the home video divisions of major and independent motion picture studios, and other related businesses that constitute and support the home video entertainment industry.