Sea Change in Movie-Rental MarketJanuary 19, 2012

Sea Change in Movie-Rental Market

Brick-and-mortar retail stores continue to cede movie-rental market share, as kiosks and digital-streaming rentals become more accepted by consumers.

Market research company, The NPD Group reports the U.S. consumer rental of movies in DVD and Blu-ray Disc formats fell by 11 percent in 2011, versus 2010,

Nearly one in three paid movie rentals (31 percent)

now come from paid video-on-demand (VOD) options.


Netflix is the dominant provider of paid digital movie rentals, posting a 55% share in the fourth quarter of 2011 (though down from the company’s peak of 59% in Q2 and Q3 ‘11).

“The movie-rental market is clearly undergoing a sea change, as consumers become better equipped to access on-demand and streamed movies and are more comfortable with available delivery options,” said Russ Crupnick, senior vice president, industry analysis for The NPD Group.


“Even so renting physical discs from now-ubiquitous kiosks in grocery stores and other venues has taken the lead as the most popular movie-rental method in the U.S.”

The leaders in the physical-disc rentalsvportion of the home entertainment category continues to change.

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