TNR Says DVD Rental Kiosks Could Reach a Tenth of the Market26 Mar, 2007 By: Jessica Wolf
DVD kiosks could shortly make up as much as 10% of the rental market, according to a consumer behavior report conducted by kiosk company TNR Entertainment Corp.
In the first comprehensive national survey of the rapidly growing DVD rental kiosk industry sector, 60% of current DVD renters expressed interest in renting from self-service DVD movie rental kiosks, according to the company.
Based on current consumer and retail market dynamics, this represents a potential market approaching $1 billion accruing to this sector over the next five years, applying selected data from the nationwide survey, according to TNR. That $1 billion figure takes into account the 25,000 total new kiosk locations forecasted to open over the next three years, according to the company.
TNR Entertainment is the country's largest owner and operator of DVD rental kiosks in supermarkets and grocery stores, operating under The New Release brand.
“There are several compelling factors supporting this significant migration from conventional rental venues,” said Richard B. Cohen, CEO of TNR Entertainment. “We have proven consumer demand in existing kiosk installations, exploding retailer adoption of the kiosk rental model, and the thousands of potential retail rooftops nationally — which translates into millions of future transactions.”
Other findings in the TNR-sponsored survey include the fact that grocery store-based kiosks have a strong appeal for families and renters in the 30-54 age group.
The study also found that awareness of rental kiosks is still developing. Approximately one-third of all consumers surveyed indicated awareness of the self-serve DVD kiosk concept, but only 5% of the respondents had rented through one. Awareness and rental usage in more developed markets is substantially higher, according to the survey.