Study: Amazon Instant Video Gaining on Redbox

2 Dec, 2015 By: Erik Gruenwedel

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Redbox remained (barely) the most popular rental service for movies in the third quarter (ended Sept. 30), according to a new from Digitalsmiths.

TiVo-owned Digitalsmiths found that 15.8% of respondents used Redbox, compared with 15.4% who used Amazon Instant Video, the e-commerce service’s transactional VOD and Digital HD platform. Another 7.7% used iTunes; 4.7% used Google Play; 2.3% YouTube Movies; 1.6% used Walmart’s Vudu; 1% used Warner Bros.’ Flixster; and 0.8% used Best Buy’s CinemaNow.

The report found that 36.1% of respondents use the services, while 62.4% of the 3,150 respondents said they don’t use any of the services, and 1.5% said they use alternative platforms.

Redbox saw usage edge up 0.4% from the previous-year period, Amazon Instant Video saw usage spike 5.1%. YouTube, CinemaNow and iTunes saw slight declines, while Google Play didn’t register a response a year ago.

The percentage of respondents who didn’t use any of the aforementioned services declined 7% year-over-year.

Notably, Redbox, Amazon and iTunes all saw usage declines from the second quarter, with Redbox the biggest loser at 2.3%. The drop was projected by Redbox, which earlier this year announced Q3 would be the kiosk rental service’s weakest quarter of the year — due in large part to reduced release slates from studios.

Among respondents, 41% spent from $3 to $11 monthly on the services. Weekly consumption from 1-5 hours of content declined 4.3%; another 3.2% from 5-10 hours of content; and 1.3% from 10-15 hours. Consumption of video content less than one hour increased 0.5%.

Spending on physical and digital movie rentals and purchases dropped 5.3% year-over-year; and 8.5% over the past two years.

 

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