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Kiosks Surpass Store Movie Rentals

17 Jan, 2011 By: Erik Gruenwedel

Kiosk venders, led by Redbox and Blockbuster Express, for the first time generated more disc rental transactions than traditional video stores, according to new data from The NPD Group.

Port Washington, N.Y.-based NPD said the milestone was reached in the third quarter of 2010, and before Redbox disclosed poor results for the fourth quarter, slated for release Feb. 3.

NPD said Netflix and other subscription-based services such as Blockbuster By Mail comprised 41% of the rental market, followed by kiosks at 31% and stores at 27%.

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.”

Netflix releases fourth quarter results Jan. 26.


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