Kiosk Rentals Indicate DVD Health

June 1, 2010

This article is included in these additional categories:

Analytics, Automated & MarTech | Data-driven | Media & Entertainment | Retail & E-Commerce | Technology

While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as demonstrated by the usage of movie rental kiosk machines, according to a recent survey by The Nielsen Company.

Renters Less Likely to Buy DVDs
One finding from the study was that average disc purchasing (buy rate) among households who also rented movies on physical DVD or Blu-ray declined in 2009 at a steeper rate compared to the average for all disc buying households. The buy rate among households renting a movie on DVD or Blu-ray declined by 11% in 2009, compared to a 7% drop among all disc-buying households.

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Furthermore, survey results indicated that 34% of these renting households had rented a movie from a kiosk.

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In addition, households renting from a kiosk are increasingly turning to kiosks to rent movies with 63% reporting that they had rented more movies from a kiosk in the past 12 months compared to the prior 12 months.

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Wealthier Suburban Parents Buy from Kiosks
Demographically, disc-buying households who also rented from a kiosk were more likely to have children under the age of 18 and skewed towards a suburban lifestyle when compared to the average disc buying household. Despite the value proposition of renting a movie from a kiosk for a dollar a day, these households are more likely to be on the upper end of household incomes.

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Video Gamers Consume New Media
Video game category buyers (those spending at least $1 per month on game-related content) consume several other forms of new media at a rate higher than the general population, according to previous Nielsen research. Video game category buyers, who comprise 24% of US households, devote a percentage of their wallet share at a rate 120% or higher than the general population in media categories besides video game content that include buying or renting feature films on DVD, Blu-Ray or video (4.3% compared to 3.5%).

About the Data: Nielsen fielded a survey to its panelists who were identified as disc buyers and asked them to report their movie transactions from channels not tracked by scanning. This included rental transactions (both physical and digital rentals) and downloads.

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