Redbox Outpaces Rental Stores

Aron Schatz
January 18, 2011

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Those little red kiosks at supermarkets and such are out-pacing traditional video rental stores. This should come as no surprise as people are generally lazy and will do what is the easiest thing. Having those kiosks at stores they are already in makes the rental process easier and leads to more impulse renting. Netflix streaming is the ultimate in ease, though.


NPD Group says that for the first time, movie rentals from standalone kiosk have a larger market share in the United States than those from brick-and-mortar stores. "Netflix and other subscription services comprised 41 percent of video rental turns in the third quarter of 2010," NPD wrote, "followed by kiosk rentals at 31 percent, and in-store rentals at 27 percent." NPD, a research firm, said today that its study found the share of kiosk rentals grew 10 percent from the same quarter in 2009. The data only accounts for disc rentals and does not include movies streamed over the Web. The findings come four months after Blockbuster, the former No. 1 video rental outlet, filed for bankruptcy protection. The company is now pursuing its own kiosk strategy.



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