Video & Audio|October 31, 2011| Author: Kim LaCapria|Tags: , , ,

Streaming, Netflix and Redbox Boost Home Rental Numbers in US Market

Netflix revenues 2011
Despite the recession (and consistent grumbling about price increases for Netflix and then to a smaller degree, Redbox), spending on home movies in the US was up 5% in the third quarter over the same period of time last year.

The home movie market has taken a beating in recent years, with a battered economy as well as competition with piracy (can anyone compete with free) biting a large chunk out of what Americans used to spend on renting films. But the market is finally showing a slight increase thanks to “cut rate” rentals on DVDs as well as streaming and video on demand (VOD) options available to the market at large.

Industry organization The Digital Entertainment Group compiled the stats and say that Q3 was decent, although overall spending for the year was down 2% to $12.3 billion. While consumers are availing themselves of the cheaper DVD rental options as well as the convenience and relatively low-cost of streaming and VOD, purchases of films and usage of traditional bricks and mortar rental shops kept gains low, according to the group. Over the same period last year, DVD sales have dropped 15%.

Digital purchases of films remained the smallest segment of the market, but it rose $15 million to $136 million in sales over last year.