Port Washington, N.Y. – The share of DVDs and Blu-ray disc
titles rented from Redbox (NASD: CSTR) and other standalone DVD rental kiosks overtook the
share of titles rented from retail stores for the first time ever in the U.S.
last year, according to a report from market research firm NPD Group.
the third quarter of 2010, Netflix (NASD: NFLX) and other subscription services accounted
for 41% of rentals, followed by kiosks with 31%, and in-store rentals at 27%.
The share of titles rented from kiosks was up 10 percentage points from a year
ago, while in-store rental share declined by 13 points.
landscape for DVDs and BDs continues to shift, and consumers are obviously
responding positively to the perceived value and convenience of kiosks,"
said NPD analyst Russ Crupnick.
"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