NPD Group Finds More Rental Kiosks Being Used Compared To In-Store

Have you been out to a DVD rental kiosk lately? What about a movie rental store? Opened your mailbox only to find a Netflix envelope? We're guessing that you may have utilized Netflix or Redbox lately, but when's the last time you actually drove out to a movie rental store to find a flick? It's happening less and less overall, and now there are figures to prove it.

NPD Group's VideoWatch service has found that for the first time, 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 U.S. Netflix and other subscription services comprised 41 percent of video rental turns in the third quarter of 2010, followed by kiosk rentals at 31 percent, and in-store rentals at 27 percent. The share of videos rented from kiosks increased 10 percentage points since the previous year’s third quarter, subscription rental share rose 2 points, and in-store rental share declined by 13 points.

Those numbers are very telling. Blockbuster recently filed for bankruptcy, and we have to believe that other movie rental stores aren't far behind. It's just too easy to get movies these days via the mail, through a streaming set-top box or at a Redbox machine when you're already out at the store. And face it: easy wins!

For the First Time, a Larger Share of DVDs and Blu-ray Discs Rented From Kiosks Than From Retail Stores

Consumer research from The NPD Group shows a year-over-year 10 percentage point gain in the share of videos rented from kiosks during the third quarter of 2010, as the percentage of videos rented from video stores declined by 13 percentage points and subscription rental share increased just 2 points.

PORT WASHINGTON, NEW YORK, January 17, 2011 – Recent research by The NPD Group, a leading market research company, reveals that for the first time 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 U.S. last year. According to NPD’s VideoWatch service, Netflix and other subscription services comprised 41 percent of video rental turns in the third quarter of 2010, followed by kiosk rentals at 31 percent, and in-store rentals at 27 percent. The share of videos rented from kiosks increased 10 percentage points since the previous year’s third quarter, subscription rental share rose 2 points, 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.”

Data note: The information in this press release is from NPD’s Weekly VideoWatch tracking of U.S. consumers, age 13 and older, who reported on their purchases and rentals of DVD and BD titles.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our 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. For more information, contact us, visit http://www.npd.com/, or follow us on Twitter: @npdgroup.