Report says DVD kiosks, subscription services undermining rental stores

Home Media Magazine: According to a new report from Adams Media Research, DVD rental stores are losing substantial revenue to DVD kiosks and mail subscription services. The research firm's 2009 video rental market report estimates that so-called brick-and-mortar DVD rental stores will generate only about $4 billion in revenue by 2013. That's a decrease of approximately 27 percent from $5.5 billion in 2008. Given the fact that many are turning to movie rental as a cheaper entertainment alternative in a tough economy, however, the report projects that revenues from the overall rental market will remain the same at $8 billion. "It is clear that the video rental industry is a strong beneficiary of the current economic crisis," wrote Stacey Widlitz, an analyst with Pali Capital.

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