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download (20)Even though digital delivery of entertainment content seems to dominate the headlines these days, there remains a large segment of the population who still prefer their movies to come on shiny little discs. According to research firm B. Riley & Co., even though video store rental revenue continues to decline, some consumers will stubbornly cling to discs for years to come.

The firm estimates that video store rental revenue will drop below the $1 billion mark this year, with the overall physical rental market coming in at $5.3 billion. The sole growing segment in that market? Kiosk rentals, of course, dominated by Redbox.

B. Riley analyst and frequent Redbox booster Eric Wold explained continued consumer affinity for disc rentals thusly:

“We continue to believe there is a large group of consumers that prefer and will continue to prefer renting DVDs or Blu-ray Discs for a number of understandable reasons: the large cost differential between DVDs and VOD, a lack of appropriate broadband access, or a desire for the better quality and enhanced content of Blu-ray versus downloads (i.e., alternative endings, additional features, etc.),”

Wold also believes that Redbox Instant, the company’s new joint venture with Verizon, will peel off Netflix disc subscribers looking for quicker access to their favorite films. Said Wold:

“We believe the ability to get same-day discs at the kiosk (vs. waiting a day for Netflix delivery), along with the addition of unlimited streaming content could prove to be a motivating factor to get Netflix subscribers to cancel,”

What do you think, Insiders? Will you still be renting movies on disc for the foreseeable future?

[via Home Media Magazine]

12 Responses to “Report: Disc Rentals Still Relatively Strong”

  1. Visitor [Join Now]
    DanoFive0 [visitor]

    I have Netflix Online. Three out at a time on DVD with Netflix. And Two out at time in the mail from Block Buster. I cut the cord years back.
    I can hit RedBox if I like. The way I have it set up. I get a new DVD in the mail (5) days a week.
    Yes it cost me about $38.00 a month. But what the hell.

  2. Visitor [Join Now]
    stonears [visitor]

    Streaming is wonderful. UNLESS YOU ARE HEARING IMPAIRED! People like me who can’t hear audio tracks are ignored when it comes to streamed movies. Streamed movies don’t allow a subtitle to be selected. For me to watch a movie with no subtitles would be like a person who hears normally not having the audio track played. Maybe someday this will change but for now I have no choice but to rent or buy the disc if I want to watch a movie and really enjoy it.

    • Member [Join Now]
      ChadCronin [chadcronin]

      Netflix has been adding closed captioning and is continuing to do so til all is done, so I don’t think that should be an issue too much longer

    • Visitor [Join Now]
      DanoFive0 [visitor]

      I am hard of hearing also.. And need CC Closed Caption….
      Netflix has Closed Caption on 75% of there online Movies and TV shows. And will have it on everything online by 2014..
      Netflix online will be your best bet. For Online watching..

    • Visitor [Join Now]
      DarrellP [visitor]

      Stonears, I have the same situation & I discovered that wearing headphones helps a whole lot.

    • Visitor [Join Now]
      DanoFive0 [visitor]

      Just get Netflix. They have CC Closed Caption on over 3,000 TV shows and movies now. And will have it on everything online by 2014…
      I caned Block Buster. I now have Netflix online and (4) DVDs out at a time. out at a time with them.. All for under $40.00 a month. And they have a shipping place about 30 miles from me. I have a DVD coming all most everyday.. And have it all hooked up to my 55″ LCD TV. And all.
      Doing great with it!

  3. Visitor [Join Now]
    moom [visitor]

    I have 3-at-a-time from Netflix, and am happy with it. Had streaming back when it was free but didn’t use it very much. I’m happy with my current plan and will continue as long as Netflix provides a wide variety of DVD titles.

  4. Visitor [Join Now]
    Joe Schmuck [visitor]

    DUH !!!!!!!!!!

  5. Member [Join Now]
    BlueDesert [bluedesert]

    The whole deal with renting actual DVDs in the mail is that MANY of us are looking for titles that are indie,foreign and so on. Most of these don’t ever show up on streaming.They never show up in a RedBox kiosk either.Thus we have to get the actual DVD to watch at home.For that Netflix is superb.I’ll never change to streaming-there is nothing of interest there for me. I had it for 2 months and watched maybe 4 titles. Streaming is for people who don’t truly care what they watch. DVDs in the mail is for people who do care what they watch.

    • Visitor [Join Now]
      DanoFive0 [visitor]

      BlueDesert.

      Like you I do like my DVDs in my hand. But I also have Netflix streaming with my three out at a time from them. I will give it three to five years. DVDs in the mail will be a thing of the past. They will go the way the 12″ Laser Disc did. You will need to buy them on Ebay ect to get a DVD.
      But until then I still will get them in the mail with my streaming.

  6. Visitor [Join Now]
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  7. Visitor [Join Now]
    Trula Lafountain [visitor]

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