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NPD: Kiosks to Make Up 30% of U.S. Rental Market by 2010

25 Aug, 2009 By: Stephanie Prange

Video rental kiosks, including Redbox, are experiencing more growth than either traditional stores or subscription rental and are on track to make up 30% of the U.S. rental market in 2010, according to the NPD Group.


Through the first half of 2009, the share of rental turns (the number of videos rented by consumers) reached 19% for video kiosks such as Redbox, compared to 36% for Netflix and other subscription services, and 45% for Blockbuster and other traditional brick–and-mortar video stores.


However, a primary consumer appeal for subscriptions and store rentals is their depth of title selection, which might help mitigate the increased competition from kiosks, which offer a more limited list of video titles, NPD reports.


“Consumers are obviously responding positively to the perceived value of $1-per-day rentals, and they appreciate the convenience offered by video rental kiosks,” said Russ Crupnick, VP of industry analysis for NPD.


Data in the report comes from NPD’s Weekly VideoWatch tracking of U.S. consumers age 13 and older who reported on their purchases and rentals of DVD and BD titles.



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