In the third quarter of 2010, kiosk rentals represented 31 percent of the total video rental market, followed by in-store rentals at 27 percent. Netflix and other subscription services made up 42 percent of the market, according to data from market research firm NPD Group.
Of the three categories, kiosk rentals showed the strongest growth with a 10 percent increase from third quarter 2009. Subscription rentals rose 2 percent, and in-store rentals fell 13 percent.
“For the last 10 years, the brick-and-mortar video rental stores have been sitting on a track looking at the train coming at them, and they have done very little to get out of the way or to do something that could save them,” said Serdar Durmusoglu, a University of Dayton assistant professor or marketing.
There are nearly 170 Redbox and 27 Blockbuster Express kiosks at Dayton-area fast food restaurants, grocery and drug stores, and gas stations.
In contrast, the Dayton area has 12 Blockbuster Video and eight Family Video stores. Two local Blockbuster stores, one in Xenia and one in Miamisburg, will close soon following Blockbuster’s bankruptcy filing in September.
Nationally, Blockbuster closed 253 stores in January 2010 and planned to close as many as 125 others by the end of last year, according to the company’s investor information.
The Movie Gallery and Hollywood Video liquidated all area stores last year.
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