Nearly one in five movie watchers are already renting their DVDs and Blu-rays from video rental kiosks like Redbox, according to the industry watchers at NPD Group, and by next year, that number could grow to almost one in three.
For now, by-mail subscription rental services like Netflix account for 36 percent of the U.S. video rental market, while good-old brick-and-mortar stores like Blockbuster still have a 45-percent slice of the pie.
But expect that to change, especially as DVD rental kiosks "are becoming more ubiquitous in grocery stores, mass merchandisers, and quick-serve restaurants" like McDonald's, says the NPD Group.
Now, as NPD points out, movie buffs will still warm to by-mail and in-store video rentals because of their wide selection of titles, while DVD kiosks—though convenient—typically have only a few hundred discs per location.
That said, if $1-a-night kiosk companies like Redbox and its ilk stay on schedule with their expansion plans, DVD kiosks will end up owning 30 percent of the video rental market in 2010, the NPD Group concludes.
Meanwhile, Redbox has managed to enlist another Hollywood studio in its cause: Paramount, which just inked a five-year, $575-million deal to distribute its DVDs to the kiosk company, with new releases to arrive on the same day they go on sale at retail stores, according to Video Business.
Redbox has already signed similar deals with Sony and Lionsgate, with Redbox agreeing not to sell used Paramount discs on the cheap in exchange for getting its new releases on time. Paramount will also get detailed rental data from Redbox as part of the deal, Video Business reports.
But while Redbox is signing deals with some Hollywood studios, it's filing lawsuit against others—namely Universal, Fox, and now Warner Brothers, all of which are looking to delay their new DVD releases from Redbox kiosks until anywhere from 28 to 45 days after they go on sale in stores.
For now, by-mail subscription rental services like Netflix account for 36 percent of the U.S. video rental market, while good-old brick-and-mortar stores like Blockbuster still have a 45-percent slice of the pie.
But expect that to change, especially as DVD rental kiosks "are becoming more ubiquitous in grocery stores, mass merchandisers, and quick-serve restaurants" like McDonald's, says the NPD Group.
Now, as NPD points out, movie buffs will still warm to by-mail and in-store video rentals because of their wide selection of titles, while DVD kiosks—though convenient—typically have only a few hundred discs per location.
That said, if $1-a-night kiosk companies like Redbox and its ilk stay on schedule with their expansion plans, DVD kiosks will end up owning 30 percent of the video rental market in 2010, the NPD Group concludes.
Meanwhile, Redbox has managed to enlist another Hollywood studio in its cause: Paramount, which just inked a five-year, $575-million deal to distribute its DVDs to the kiosk company, with new releases to arrive on the same day they go on sale at retail stores, according to Video Business.
Redbox has already signed similar deals with Sony and Lionsgate, with Redbox agreeing not to sell used Paramount discs on the cheap in exchange for getting its new releases on time. Paramount will also get detailed rental data from Redbox as part of the deal, Video Business reports.
But while Redbox is signing deals with some Hollywood studios, it's filing lawsuit against others—namely Universal, Fox, and now Warner Brothers, all of which are looking to delay their new DVD releases from Redbox kiosks until anywhere from 28 to 45 days after they go on sale in stores.
The studios in question are basically afraid that Redbox's $1-a-night prices are (in the words of a Fox exec) "grossly undervaluing" their latest releases. Unfortunately for Hollywood, though, it sounds like many of you are more than happy to wait a month if it means paying only a buck a night for DVD rentals.
So, how often do you rent DVDs from a kiosk like Redbox? Think you'll use them more often as more and more crop up around the country?
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