Technology/Services

Kiosks Trump Stores for DVD Rental

But Netflix still rules
PORT WASHINGTON, N.Y. -- The share of DVDs and Blu-ray Discs (BDs) rented from Redbox and other standalone kiosks overtook the share of retail store rentals in the United States last year, according to research by The NPD Group. NPD's VideoWatch service said Netflix and other subscription services comprised 41% of video rental turns in the third quarter of 2010, followed by kiosk rentals at 31% and in-store rentals at 27%.

The share of videos rented from kiosks increased 10 percentage points since the previous year's third quarter, subscription rental share rose 2 points, [image-nocss] and in-store rental share declined by 13 points.

"The rental landscape for DVDs and BDs continues to shift, and consumers are obviously responding positively to the perceived value and convenience of kiosks," said Russ Crupnick, entertainment industry analyst for NPD. "Traditional video retailers will no doubt experience even more competition in the coming year, as kiosks appear more frequently in grocery store chains, mass merchandisers, and quick-serve restaurants, and as competition intensifies from an assortment of on-demand rental offerings."

VideoWatch tracks U.S. consumers, age 13 and older, who reported on their purchases and rentals of DVD and BD titles.

The NPD Group, Port Washington, N.Y., is a leading provider of consumer and retail information for a wide range of industries. It helps clients to identify new business opportunities and guide product development, marketing, sales, merchandising and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless.

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