I seem to recall they had stuff on in the background while you browsed, but I don't know if they had to pay for that right or if the movie distributors paid them, or neither. But I suspect if a commercial establishment started having "theater" showings, they might be violating the license agreements of the videos.

I know that schools sometimes do it (or they used to, before the RIAA went rabid), however, as do (did) day-care facilities.