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]