NPD Group released a study today that states, for the first time ever, Redbox and other movie rental kiosks that you"d see at your local Walgreens or supermarket outgrew retail video rental stores in the United States last year.
In the third quarter of 2010, kiosk rentals grew by 10 points from the same time the previous year while subscription services grew 2 points and retail stores marketshare dropped significantly by 13 points. That puts most people getting their Friday Flick Fix through Netflix at a dominant 41% of marketshare, whereas 31% are going to their local kiosk, and a last place, but not too far behind, 27% still go to the local video store.
It also symbolizes a huge turn of philosophy for most Americans. This time last year, Netflix and retail chains like Blockbuster were neck and neck in the race of video rental dominance. Now, it appears retail stores are that much closer to going the way of the Dodo. Though, don"t count Blockbuster out just yet.
Blockbuster has made efforts to move towards the new decade of video rentals, with Blockbuster On Demand and even Redbox kiosk competitors marketed as Blockbuster Express. Albeit, that doesn"t say much for their retail business.
NPD Group did not account for streaming services in their study.
[Image credit: Redbox]