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Redbox, Netflix Top Q2 Consumer Rental Options

22 Sep, 2015 By: Erik Gruenwedel

Kiosk vendor Redbox and subscription streaming pioneer Netflix again resonated atop preferred consumer choices for disc rentals and over-the-top video, respectively, according to new data from Digitalsmiths.

Redbox topped Amazon Instant Video (15.6%) among 18.1% of respondents in a second-quarter survey of 3,210 respondents in the United States and Canada. That percentage was down 0.5% from the prior-year period.

Digitalsmiths said 38.3% of respondents used pay-per-rental services such as Redbox, iTunes, Walmart’s Vudu.com, Best Buy’s CinemaNow and Amazon, among others.

Amazon increased usage 6.5% among respondents, while iTunes increased 2.7% to 9.3%, followed by YouTube Movies (up 2.1%) at 3.3%; Vudu (up 0.7%) at 2.1%, and CinemaNow (up 0.4%) at 1.2%. Google Play registered for the first time among survey respondents with 4.7% usage.

Interestingly, despite the retail brand shuttering operations Jan. 12, 2014, Blockbuster On Demand generated 1.4% of use in Q2, which was up from 1% a year ago.

Collectively, year-over-year use of the services increased 8%, which was up 16.2% since 2013. Most users (37.5%) said they spend one to five hours a week consuming rental content, with another 18.6% consuming less than one hour per week. More than 20% of respondents spent $3 to $5 per month renting content, compared with 27.3% a year ago. Notable gains (up 2.8%) occurred among respondents spending from $18 monthly on rentals.

Interestingly, the rental options all have significant growth opportunities considering 61.7% of respondents said they don’t use them, compared with 69.7% a year ago. Just 1.4% of respondents said they use alternative rental options.

Meanwhile, among streaming services, Netflix dominated usage among nearly 50% of respondents, up 5% from a year ao. Indeed, 57.7% of respondents use SVOD services, with 20.1% using Amazon Prime Instant Video, up 6% from a year ago. Hulu Plus usage increased 2.3% to 11.8%. Notably, HBO Now registered 4.9% usage — an impressive tally considering the service launched April 7.

Newcomers PlayStation Vue and Sling TV generated 1.79% and 1.2% usage, respectively. On the opposite end, Redbox Instant, which shuttered earlier this year, generated 2.7% usage a year ago.

Streaming use averaged one to five hours per week among 33.6% of respondents, compared with 37.8% a year ago. The largest increase in SVOD use occurred among respondents from 10 hours a week. Dollars spent monthly on SVOD ranged from $9 to $11 (up 3.3%) among 23.9% of users, compared with 20.6% of users a year ago.

About the Author: Erik Gruenwedel

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