2011 treated Redbox pretty well, according to data from research firm The NPD Group.
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According to the firm, Redbox’s unit volume in disc rentals rose 29% in the declining market, and Redbox now commands 37% of all DVD and Blu-ray rentals.
Russ Crupnick, SVP of industry analysis for The NPD Group, summed up the firm’s findings thusly:
“There’s no doubt that Redbox has been the largest beneficiary of the collapsing brick-and-mortar store rental business, especially with ongoing Blockbuster store closings and the fact that there are also fewer independent stores than the prior year . . . The Netflix share erosion may have resulted from their recent well publicized challenges with pricing, and from their now-defunct Qwikster experiment; however, they are in the process of shifting customers to their Watch Instantly option, so not the entire physical movie rental share drop is a net loss.”
Even with the rising ubiquity of streaming movie options, Crupnick says that demand for movie disc rentals remains strong:
“The movie-rental market is clearly undergoing a sea change, as consumers become better equipped to access on-demand and streamed movies and are more comfortable with available delivery options . . . Even so, renting physical discs from now-ubiquitous kiosks in grocery stores and other venues have taken the lead as the most popular movie-rental method in the U.
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How will 2012 shake out for Redbox? Will we continue to see banner growth from them
(via Home Media Magazine)