2012 could be an apocalyptic year for DVD kiosks if analysts from investment banking giant J.P. Morgan are to be believed. In an recent report, the analysts say that the day of judgment for kiosks, which is fewer than two years away, will be ushered in by streaming and VOD after kiosks peak in 2011.
From the report:
“We believe adoption of online video streaming and downloading services will accelerate dramatically in 2011 … and be promoted by major retailers . . . DVD kiosk revenue opportunity [as a result] will peak in 2011, owing to loss of share of the home entertainment market to the online video services.”
Laurence Berlin, an analyst with First Analysis Corp., believes that the demise of the DVD kiosk is not as imminent as some would believe, and that Redbox parent Coinstar almost certainly has a contingency plan in the works. Said Berlin:
“[Digital distribution] will take several years to play out . . . I suspect Coinstar has a smart management team that is working on this.”
Will DVD kiosk doomsday come in 2012, Insiders? Just how close is digital distribution to tipping the scales once and for all?
(via Home Media Magazine)