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On the Anniversary of Qwikster, Netflix Disc Rental Subscriber Share Down 23 Percent
Wed Sep 19, 2012 at 12:00 PM ETTags: Netflix, Qwikster, Industry Trends, Rentals (all tags)
The NPD also says that disc renting is down overall, in correlation with the closure of rental locations.
A year ago, Netflix decided to try something new. Instead of a single service that offered both discs and streaming content, they would break off the disc-based rentals into a separate service called Qwikster. It should be obvious, but the idea didn't work.
The result of the Qwikster announcement, coupled with price increases across the board, was instant dissatisfaction from disc renters. Now, a year later, the popularity of Netflix disc rentals has decreased. A year ago, 35 percent of Netflix customers rented discs, while now they're down to 27 percent.
This seems to be part of a general trend away from disc rentals in general, which are down 40 percent from last year. It doesn't help that there's also been a large decline in the amount of renters on the market. The biggest, and likely to stay that way for the foreseeable future, is Redbox.
Source: Home Media Magazine
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On the Anniversary of Qwikster, Netflix Disc Rental Subscriber Share Down 23 Percent
Wed Sep 19, 2012 at 12:00 PM ETTags: Netflix, Qwikster, Industry Trends, Rentals (all tags)
The NPD also says that disc renting is down overall, in correlation with the closure of rental locations.
A year ago, Netflix decided to try something new. Instead of a single service that offered both discs and streaming content, they would break off the disc-based rentals into a separate service called Qwikster. It should be obvious, but the idea didn't work.
The result of the Qwikster announcement, coupled with price increases across the board, was instant dissatisfaction from disc renters. Now, a year later, the popularity of Netflix disc rentals has decreased. A year ago, 35 percent of Netflix customers rented discs, while now they're down to 27 percent.
This seems to be part of a general trend away from disc rentals in general, which are down 40 percent from last year. It doesn't help that there's also been a large decline in the amount of renters on the market. The biggest, and likely to stay that way for the foreseeable future, is Redbox.
Source: Home Media Magazine
See what people are saying about this story in our forums area, or check out other recent discussions.
Blockbuster Will Close 500 Stores in the First Half of 2012
Mon Feb 27, 2012 at 12:00 PM ETTags: Blockbuster, Blockbuster @Home, DISH, Store Closings, Rentals (all tags)
That’s a third of the existing brick-and-mortar locations.
Bad news for folks that love Blockbuster retail locations and, of course, the people that work there – Dish has announced that it will be closing 500 underperforming stores in the first half of this year. Considering that there are only 1,500 stores left, that’s a huge blow.
“We still have a lot of work ahead us in retail stores,” says CEO Joe Clayton, adding that, as they expected, the company was able to run Blockbuster without losing or gaining money – “break-even” as Clayton puts it.
He also says that Blockbuster services like Blockbuster@Home have been instrumental for both the video rental business and for Dish.
Source: Home Media Magazine
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Redbox Revenue is Up Again
Tue Aug 02, 2011 at 02:30 PM ETTags: Redbox, Rentals, Industry Trends, High-Def Rentals (all tags)
Hey, what do you know? Redbox is making money hand over fist, just like Redbox does.
So you might have picked up on this already, but Redbox is very good at making money. Not just at making money, but making lots of money. More money than most people - most companies even - will see in their lives.
The latest earnings report from the company shows that revenue is up 33.8 percent in the second quarter of 2011. It's not just new kiosks that increased the company's earnings either - kiosks rented an average of 16.8 percent more discs.
Redbox president Mitch Lowe says that the popularity of Redbox for movies and games means more than just money for the company. " More than 1.5 billion movie rentals and the positive consumer reaction to video games highlight the ongoing demand for physical media," he says.
Source: Home Media Magazine
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Redbox Leads in Rentals for January
Fri Feb 25, 2011 at 01:00 PM ETTags: Redbox, Netflix, Rentals, Industry Trends (all tags)
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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