No one familiar with the movie rental business can deny that 2009 was a huge year for kiosk rentals, with dominant player Redbox experiencing massive growth. Rentrak Corp. has recently reported that “U.S. consumer spending on DVD and Blu-ray Disc rentals business rose 4.1% to $6.5 billion in 2009”. In addition, 2009 kiosk revenue, spearheaded by Redbox, increased by an incredible 94% to nearly $1 billion. The Coinstar-owned kiosk operator also passed the 20,000 kiosk mark last year.
This kiosk rental growth came at a time when the B&M and online rental sectors declined a combined 3.2%. Rental growth was not as swift in the 4th quarter of the year, which Rentrak VP Brad Hackley attributed to “the late year downturn to closures of physical stores by both Blockbuster and Hollywood/Movie Gallery”.
As we move into 2010, will Redbox be able to maintain this momentum and meet or beat 2009’s numbers? Will the Hollywood Three have their way and strongarm consumers away from rentals and back to more profitable (for them) movie buying? Leave your predictions in the comments.
[via Video Business]