03-14-2009, 12:53 PM
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DVD-by-mail subscription services and standalone kiosks, according to a new report, are steadily supplanting a trip to the DVD rental store.
In its 2009 video rental market report, Adams Media Research said brick-and-mortar DVD rental stores would generate about $4 billion in revenue by 2013, down about 27% from $5.5 billion in 2008.
Considered a cost-effective alternative to sellthrough in the current economy, the overall rental market is projected to remain essentially unchanged at around $8 billion in annual revenues.
Online DVD rental pioneer Netflix would spearhead DVD-by-mail growth 41% to $2.9 billion by 2013, spurred in large part to its value-added streaming service.
Streaming is in a long line of innovations from the superstore replacing the mom & pops to revenue-sharing copy depth problems, subscription and kiosk that are all new ways to do the business, Adams said. It all keeps consumers happy and coming back.