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Tuesday, January 18, 2011
DVDs and Blu-ray Discs Rented From Kiosks Increased

Consumer research from The NPD Group shows a year-over-year 10 percentage point gain in the share of videos rented from kiosks during the third quarter of 2010, as the percentage of videos rented from video stores declined by 13 percentage points and subscription rental share increased just 2 points.

Recent research by The NPD Group market research company, reveals that for the first time the share of DVDs and Blu-ray Discs (BDs) rented from Redbox and other standalone kiosks overtook the share of retail store rentals in the U.S. last year. According to NPD's VideoWatch service, Netflix and other subscription services comprised 41 percent of video rental turns in the third quarter of 2010, followed by kiosk rentals at 31 percent, and in-store rentals at 27 percent. The share of videos rented from kiosks increased 10 percentage points since the previous year's third quarter, subscription rental share rose 2 points, and in-store rental share declined by 13 points.

"The rental landscape for DVDs and BDs continues to shift, and consumers are obviously responding positively to the perceived value and convenience of kiosks," said Russ Crupnick, entertainment industry analyst for NPD. "Traditional video retailers will no doubt experience even more competition in the coming year, as kiosks appear more frequently in grocery store chains, mass merchandisers, and quick-serve restaurants, and as competition intensifies from an assortment of on-demand rental offerings."

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