Though traditional store rentals continue to comprise the largest share of U.S. consumer video rentals, market-research firm the NPD Group says DVD kiosks will capture nearly 30 percent of the market in 2010, if current plans for expansion remain on track:
According to NPD's VideoWatch service, in the coming months both subscription services and traditional video retailers will experience even more competition from kiosks, which are becoming more ubiquitous in grocery stores, mass merchandisers and quick-serve restaurants. Even so, a primary consumer appeal for subscriptions and store rentals is their depth of title selection – a key benefit that might help mitigate the increased competition form kiosks, which offer a more limited list of video titles.
In a news release, NPD says that in 2009 DVD-rental kiosks have accounted for 19 percent of rentals, compared to 36 percent for Netflix and other subscription services and 45 percent for brick-and-mortar rental stores.
