The DVD rental business has gotten off to a rough start in 2010, according to trade organization Digital Entertainment Group (DEG). The group released first-quarter data today revealing that DVD rental revenue dropped 14% in the first three months of the year compared to the same period in 2009.
The DEG chalked up the decline in rentals to the massive number of traditional rental locations that were closed by such chains as Blockbuster and Movie Gallery/Hollywood Video. The new numbers may indicate that Redbox and Netflix, which between them accounted for most of the industry’s growth in 2009, may also be slowing in their expansion.
It wasn’t all doom and gloom for home entertainment last quarter, however. Blu-ray discs sales rose 74% and rentals were up 36%, while digital distribution rose 27%.
Have your rental habits increased, decreased or held steady lately, Insiders? Why do you think rental numbers declined the first quarter of this year after growing in 2009? Tell us what you think in the comments.
(via The L.A. Times)