In my home state, Family Video [0] is still very much alive, and growing. It's one of the traditions when I visit home: we go as a family to pick up a movie or two and some takeout pizza. They're pretty busy, too.
The lackluster and non-competitive broadband access helps keep them alive. "High speed" internet for most of my family back home supports low resolution Netflix, but other streaming is terrible at best (Hulu is unwatchable, for example). HD anything requires DVDs or Bluray.