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Chalk up another victory for Redbox in the home entertainment rental business. According to a report by market research firm NPD Group, Redbox led the industry in physical media rentals in January, 2011, accounting for 35% of the market.

Netflix followed at 30%, with brick-and-mortar stores and independent video stores coming in at 30% and 5%, respectively.

Russ Crupnick, entertainment industry analyst for NPD, made the following observation on Redbox’s achievement:

“It’s a trend that is likely to continue with the pain Blockbuster is feeling and the strength of competitors . . . You know we thrive on food, water, sleep, convenience and value. Redbox has done an outstanding job of meeting consumer needs for a ‘blended’ shopping experience — it saves an extra trip when I’m at Walmart or McDonalds, and the research shows that they are perceived as delivering a high value experience price wise . . . So long as consumers can find something in the kiosk that they’d like to watch, they don’t need to choose from a massive library, and the kiosk experience works quite well.”

How much did you contribute to Redbox’s tally, Insiders? Will the company be able to do it again this month?

(via Home Media Magazine)


8 Responses to “Report: Redbox Beat All Competitors in January DVD Rentals”

  1. Visitor [Join Now]
    tinybrat [visitor]

    With netflix shifting towards streaming and away from DVDs, and Blockbuster going away shortly, Redbox will dominate the physical DVD market. I expect by late summer, Redbox share of this will be closer to 50%, maybe even higher.

    • Member [Join Now]

      Perhaps. Blockbuster Express is actually taking off quite nicely but even at that I can see Redbox holding a strong lead. Right now I think the biggest variable is Netflix. Will people shift to streaming only plans or not? I for one will alternate for while but I eventually plan of dropping disc service from them. I got tired of paying for Blu Rays that never arrived. I’m catching up on classic TV that isn’t on a streaming service yet but pretty soon I’ll drop the disc and use Redbox for new releases that I want to see.

  2. Member [Join Now]
    bugmenaut [bugmenaut-2]

    blockbuster express was not counted ??

    Its NOT the same as blockbuster. Different company, NCR owns it.

  3. Visitor [Join Now]
    bologna [visitor]

    These numbers are based on fiction from NPD. They say that BB and Hastings represents 30% but give independents 5%. Family Video has what 1,000 locations and are independently owned and do better business then BB.That doesn’t include all the mom and pop operations throughout the country. If I had to make a guess I would say there are more of those locations then there are BB’s and Hastings. The numbers are distorted because none of those locations report their numbers only public companies do. But as a single company I would say RB is probabally leading but I would bet Brick and Mortors if you include all of them would still have a bigger market share. I don’t see how NPD can seperate them or even have a clue what the numbers are.

    • Visitor [Join Now]
      Tee [visitor]

      It’s simply lazy or incompetent stats by the research firm. How hard could it be to simply go to the suppliers (Ingram, VPD, etc.) for some realistic numbers. Hell even if 10% are buying from walmart it would much more accurate. That is why allot of these numbers given are subjective at least.

    • Member [Join Now]

      I think the stats are worded wrong. I “think” from the vague descriptions that all brick and mortar stores including independents are in the 30 and the 5 percent would be “other” other like other kiosks, other mail order etc.. but not actually independent “stores” since those are brick and mortar.