Redbox and Netflix Top Preferred Rental Services17 Jun, 2015 By: Erik Gruenwedel
In an era of changing television consumption and home entertainment distribution, rental veterans Redbox and Netflix remain the preferred consumer choices for movies, according to new data from Digitalsmiths, an online research company owned by TiVo.
Redbox ranked first (18.4%) among rental services in a first-quarter 2015 survey of 3,140 consumers in the United States and Canada. The kiosk vendor topped Amazon Instant Video (15.8%), iTunes (9%), Google Play (5.3%), Vudu (2.7%), YouTube Movies (2.6%) and CinemaNow (1.1%).
A Digitalsmiths representative said Netflix's by-mail service, which had 5.5 million subscribers and generated $173 million in revenue at the end of Q1, was not included in the survey, but would be considered for the Q3 survey.
Among respondents, 38% said they spent from one to five hours a week using a movie rental service; 16.8% said they spent less than an hour per week. Nearly 21% said they rarely used a rental service, while almost 10% said they spend from five to 10 hours a week with a service.
While nearly 61% of respondents said they never used any of the aforementioned services, that percentage is down from 72% during the previous-year period. In addition, nearly 70% of pay-TV subscribers do not rent a movie from their provider. Among those that do, about 24% rent from one to three titles per month.
Meanwhile, Netflix continues to dominate the burgeoning over-the-top video space with 46.4% adoption among survey respondents — significantly ahead of rival Amazon Prime Instant Video at 18.9%. Hulu Plus registered at 11.4%, followed at a distance by PlayStation Vue (2%), CBS All Access (1.8%), Blockbuster (1.6%) and Sling TV (1%).
Noticeably absent from the results was HBO Now, which launched April 1.
Consumer spending on SVOD and OTT video increased 2.5% among subscribers spending $9-$11 a month. There was a 2.2% increase among subs spending $12-$14 a month. The largest percentage (30.1%) of respondents spent $6-$8 on SVOD, which was down from 37.5% a year ago
Interestingly, connected Blu-ray Disc players remain the most popular wireless device (at 13%) connecting the TV to the Internet, up 1.1% from 2014. BD players edged out smart TVs (12.9%), Apple TV (8.4%), Roku (8%), Google Chromecast (7.9%), Amazon Fire TV Stick (3%), Roku Stick (2.2%), TiVo (1.9%) and Boxee TV (1.4%).
Almost 58% of respondents said they didn’t own one of these devices, which was down from 65.6% in 2014.