Rentrak: Video rentals still No. 1 for consumers but not for long
Michelle Clancy ©RapidTVNews | 27-03-2012
Despite the popularity of online streaming services like Netflix and Hulu, DVD and Blu-ray disc rentals remained the No. 1 choice for home video for consumers in 2011 with total revenue topping $5.65 billion, according to Rentrak.
However, physical media won't be in that position for very much longer. Overall, 2011 domestic disc rental revenue dropped 3.4% versus 2010. In Q4 2011, the DVD and Blu-ray rental market was down 21.3% versus a year ago, with the major growth area for disc rentals in Q4 being in the kiosk channel, which grew by 28%.
"People have many choices when it comes to renting videos, for both digital and physical media, so it's interesting to see DVD and Blu-ray Disc rentals are still the No. 1 choice for consumers," said David Paiko, Vice President of Home Entertainment at Rentrak.
The measurement assessment echoes recent research from IHS Screen Digest, which says that 2012 will mark the first year that legal, Internet-delivered movies will outstrip those of DVDs and Blu-ray discs combined.
Physical video media use last year translated to 2.6 billion viewings, either via rental or purchase. There were only 1.4 billion online or cloud transactions. This year though, online transactions will account for 3.4 billion views, while Blu-ray/DVDs will account for only 2.4 billion transactions.