People renting DVDs and Blu-ray discs through retail stores, kiosks, and Netflix's mail service totaled more than 62 percent of all movie rentals in the first half of the year, according to NPD Group. In contrast, those renting digital movies via subscription streaming, pay TV video on demand, and Internet VOD added up to only 38 percent.
Rentals of DVDs and Blu-ray discs dropped by 17 percent over the past year. Video stores continue to fade away, kiosks have taken their place with 45 percent of the physical rental market, up 5 percent from last year.
Overall, digital movie rentals increased 5 percent over the first half of the year, a rise that NPD attributed to the increased popularity of Netflix's Watch Instantly service. The company's streaming option accounted for 66 percent of all digital movie rentals. Pay TV video on demand took in 28 percent, leaving Internet VOD with 6 percent.
NPD derived the data from its VideoWatch VOD report, which was based on a survey of 21,752 U.S. consumers.