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NPD: Rental Discs Still Preferred Over Digital

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Old 08-08-2012, 09:23 AM   #1
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Default NPD: Rental Discs Still Preferred Over Digital

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Rentals of DVDs and Blu-ray Discs from kiosks, brick-and-mortar retailers, and Netflix accounted for 62% of movie rental orders during the first half of this year, compared to 38% for digital movie rentals such subscription video-on-demand streaming and transactional VOD on premium TV channels and the Internet, according to new data from The NPD Group.

Within the physical market, kiosks continued to extend their lead, with rentals growing 5% over last year. Kiosks accounted for 45% of the physical market, as rentals from brick-and-mortar stores continued to fade. DVD and BD by-mail subscriptions also declined as Netflix’s continues focus on streaming instead of discs.

Digital rentals increased 5% in the first half of the year due largely to Netflix. Although the majority (80%) of Netflix rentals are for TV shows, while movies account for 66% of digital rentals. Transactional VOD on cable, satellite TV and telecommunications operators accounted for 28% of digital orders, while transactional VOD on the Internet (iVOD) accounted for 6%.

“Kiosk and subscription Internet streaming are generating strong user satisfaction ratings, including future rental intent, price, and value, which is reflected in market-share gains,” said Russ Crupnick, SVP of industry analysis for The NPD Group. “Netflx is frequently the most popular video application on connected devices, so an increase in households with Web-connected Blu-ray Disc players, tablets, and smart TVs will lead to still more video streaming activity.”
http://www.homemediamagazine.com/ind...-digital-28013
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Old 08-08-2012, 10:50 AM   #2
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Ya I don't think anyone can argue that fact. But the change is happening as we speak. This younger generation is going to be a digital one. Not a disc one.
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Old 08-08-2012, 11:41 AM   #3
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Ya I don't think anyone can argue that fact. But the change is happening as we speak. This younger generation is going to be a digital one. Not a disc one.
An important trump card that optical has is getting the new releases first. Those are the ones that consumers want to see, especially young people. So as long as Redbox can hold on to that trump card then optical rental will be very viable and will not decline that much.

Another advantage is the PQ/AQ of Blu-ray and having optional sub/audio options (and perhaps special features), but that would only appeal to a minority group.

Finally Redbox has the price advantage over VOD, so really lots of work for digital to do before it can really be king of the hill rental-wise (although it has the all-important convenience trump card).
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Old 08-08-2012, 11:43 AM   #4
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An important trump card that optical has is getting the new releases first. Those are the ones that consumers want to see, especially young people. So as long as Redbox can hold on to that trump card then optical rental will be very viable and will not decline that much.

Another advantage is the PQ/AQ of Blu-ray and having optional sub/audio options (and perhaps special features), but that would only appeal to a minority group.

Finally Redbox has the price advantage over VOD, so really lots of work for digital to do before it can really be king of the hill rental-wise (although it has the all-important convenience trump card).

I was amazed at the language choice given on the Star Trek TNG release. So many options to choose from.
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Old 08-08-2012, 06:59 PM   #5
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That's true. But I think this new generation also knows how to get those new releases for free. Sometimes before the release date. I think that is going to increase the studios to push digital/VOD even more. I was suprised the percentage was that high as it is.

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Originally Posted by bruceames View Post
An important trump card that optical has is getting the new releases first. Those are the ones that consumers want to see, especially young people. So as long as Redbox can hold on to that trump card then optical rental will be very viable and will not decline that much.

Another advantage is the PQ/AQ of Blu-ray and having optional sub/audio options (and perhaps special features), but that would only appeal to a minority group.

Finally Redbox has the price advantage over VOD, so really lots of work for digital to do before it can really be king of the hill rental-wise (although it has the all-important convenience trump card).
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