Redbox, other kiosks now have more marketshare than retail stores

NPD Group released a study today that states, for the first time ever, Redbox and other movie rental kiosks that you'd see at your local Walgreens or supermarket outgrew retail video rental stores in the United States last year.

In the third quarter of 2010, kiosk rentals grew by 10 points from the same time the previous year while subscription services grew 2 points and retail stores marketshare dropped significantly by 13 points. That puts most people getting their Friday Flick Fix through Netflix at a dominant 41% of marketshare, whereas 31% are going to their local kiosk, and a last place, but not too far behind, 27% still go to the local video store.

It also symbolizes a huge turn of philosophy for most Americans. This time last year, Netflix and retail chains like Blockbuster were neck and neck in the race of video rental dominance.  Now, it appears retail stores are that much closer to going the way of the Dodo. Though, don't count Blockbuster out just yet.

Blockbuster has made efforts to move towards the new decade of video rentals, with Blockbuster On Demand and even Redbox kiosk competitors marketed as Blockbuster Express. Albeit, that doesn't say much for their retail business.

NPD Group did not account for streaming services in their study.

[Image credit: Redbox]

 

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I know it's funny, but I actually kinda hope to have my own video rental store someday. It will be 10X better than Blockbuster and offer much better service and quality than those current mega-chains like Blockbuster. I can't go into too much details, but employees that know their movies, fine selection of snacks and drinks, many Bluray titles, good pricing scheme, among other things will make my store super competitive and may be the next generation of video-rental stores.

There will still be a place for the local video-rental store, when:
A) Internet is still laggy and slow, or maximum data limits reached
B) People want to support local businesses
C) People still feel nostalgic about browsing movies with friends in a video store
D) Other movie-going needs can be serviced better through my store (equipment, viewing lounges, etc.)

I think my model will be a success story, even if I can't go into too much detail.

As long as it has a good name I'll go even if it's just decent movie snacks. The ones in blockbuster suck. Butter popcorn (not that lame tasting butter free crap) Chips and drinks are a must! I know it's obvious but blockbuster only has candy and crappy popcorn. In my area anyway. Good luck though.

Tekkerson said,
As long as it has a good name I'll go even if it's just decent movie snacks. The ones in blockbuster suck. Butter popcorn (not that lame tasting butter free crap) Chips and drinks are a must! I know it's obvious but blockbuster only has candy and crappy popcorn. In my area anyway. Good luck though.

Yep. I'm thinking a variety of snacks and drinks. Ranging from the very affordable and common, to the more gourmet, organic and fancy stuff. I hope with all the whizbang features, I don't need to have a mega-sized store to accomplish all this. Though I could have some flagship stores...

IceBreakerG said,
Does not compute, this only adds up to 99%. Either way, I do all my rentals through Netflix.

Or they rounded without a decimal point. Let's say... 41.3 for Netflix, 31.3 for Redbox/derivatives and 27.4 for a retail store. If you follow the rules of rounding, those would all go to 41, 31 and 27 respectively.

Metodi Mitov said,

Or they rounded without a decimal point. Let's say... 41.3 for Netflix, 31.3 for Redbox/derivatives and 27.4 for a retail store. If you follow the rules of rounding, those would all go to 41, 31 and 27 respectively.

I agree, that seems like the more likely scenario.

Uh...I find this hard to believe about kiosks. Just look at Redbox's (Coinstar) financials that were just released. They kind of say otherwise.

Not weird - convenience and low price trump all for the rental market. While there is a Blockbuster close by, the Redbox kiosk is even closer. While Blockbuster has a better selection, if you are looking at a specific subset of movies (the buzz-worthy is where the rental market concentrates), Redbox usually charges lower fees than Blockbuster.