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NPD: Redbox Led All in January Rentals

23 Feb, 2011 By: Chris Tribbey


During January, Redbox accounted for about 35% of the DVD rental market in the United States, the first time the kiosk operator has taken the overall lead in physical media rentals, according to market research firm NPD Group.

Netflix accounted for roughly 30% of the market, with brick-and-mortar stores also accounting for roughly 30%. Independent video stores accounted for most of the remaining 5%.

“It’s a trend that is likely to continue with the pain Blockbuster is feeling and the strength of competitors,” said Russ Crupnick, entertainment industry analyst for NPD. “You know we thrive on food, water, sleep, convenience and value. Redbox has done an outstanding job of meeting consumer needs for a ‘blended’ shopping experience — it saves an extra trip when I’m at Walmart or McDonalds, and the research shows that they are perceived as delivering a high value experience price wise.

“So long as consumers can find something in the kiosk that they'd like to watch, they don’t need to choose from a massive library, and the kiosk experience works quite well.”

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