Redbox Leads in Rentals for January

Posted Fri Feb 25, 2011 at 10:00 AM PST by Dick Ward

This is the first time Redbox has been the number one source for rentals.

Redbox has been making huge strides in the rental market with its kiosks, but up until now it had always come in second or third in the overall scheme of things.

According to NPD Group, this changed in January. Not only did Redbox come out on top, but they came out with an impressive lead to boot. They accounted for 35 percent of DVD rentals, with Netflix trailing behind at 30 percent.

Traditional brick-and-mortar stores still made up for 30 percent of rentals, showing that despite a growing trend towards online and kiosk rental plenty of people are still going to their local video store. Independent stores make up the rest.

"Redbox has done an outstanding job of meeting consumer needs for a ‘blended’ shopping experience," says NPD's Russ Crupnick. "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."

Source: Home Media Magazine

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Tags: Industry Trends, Rentals, Netflix, Redbox (all tags)