DVD Kiosk Rental On The Rise

In 2010, more DVDs and Blu-ray Discs (BDs) were rented from standalone kiosks like Redbox and Blockbuster, than in retail stores. This according to the latest research by The NPD Group.

“Consumers are obviously responding positively to the perceived value and convenience of kiosks,” said Russ Crupnick, entertainment industry analyst for NPD.

According to NPD, Netflix and other subscription services comprised 41% of video rentals in the third quarter of 2010, followed by kiosk rentals at 31%, and in-store rentals at 27%.

Compared to the third quarter of 2009, kiosk rental increased 10 percentage points, subscription rental share rose 2%, and in-store rental share declined by 13%.

Crupnick adds, “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.”