U.S. rentals business up 4.1%, reports Rentrak

Led by Redbox, kiosk revenue grows 94%

By Marcy Magiera -- Video Business, 1/4/2010

The Curious Case of Benjamin Button was the top rental of 2009.

JAN. 4 | Embattled DVD rental kiosk operator Redbox spurred video rental growth in 2009. For the Top 20 rentals of 2009, click here.

U.S. consumer spending on DVD and Blu-ray Disc rentals business rose 4.1% to $6.5 billion in 2009, according to Rentrak Corp.’s Home Video Essentials, which collects point-of-sale data. During the year, kiosk revenue grew 94%, with the Redbox-dominated channel approaching $1 billion in revenue, more than enough to offset a 3.2% decline in the bricks-and-mortar and online sectors combined.

Consumer sales of DVD and Blu-ray, in comparison, fell 13.7% to $12.2 billion, Rentrak estimates.

Rental growth did slow in the fourth quarter, however, when kiosks posted growth of 58% over the year-earlier period, not enough to counter a 12.5% fall in online and physical stores combined, and the overall rental market declined by 5%. Rentrak VP Brad Hackley attributed the late year downturn to closures of physical stores by both Blockbuster and Hollywood/Movie Gallery. In-stores rental turns carry a higher price than those through online services and kiosks.

Redbox is the leading kiosk operator in the U.S. with more than 20,000 automated kiosks nationwide. Its controversial $1 per night model is supported by major studios representing about 40% of the rental market. Sony Pictures Home Entertainment, Paramount Home Entertainment, Lionsgate and Walt Disney Studios Home Entertainment all distribute movies directly to Redbox on street date.

Universal Studios Home Entertainment, 20th Century Fox Home Entertainment and Warner Home Video—which together account for another 40% of the market—impose a window of at least 28 days before their new releases are available directly to Redbox, and Redbox is suing each of the three on antitrust grounds.

The Blu-ray high-def disc format grew 48% in rental revenue during the year, Rentrak said, and accounted for 10% of packaged home entertainment purchases.

Top 20 rentals of 2009

Rank	Title	Release date	Studio	Index
1	The Curious Case of Benjamin Button	05/05/2009	Paramount	100.0
2	Taken	05/12/2009	Fox	94.9
3	Seven Pounds	03/17/2009	Sony	90.9
4	Eagle Eye	12/27/2008	Paramount	90.3
5	Gran Torino	06/09/2009	Warner	86.6
6	Paul Blart: Mall Cop	05/19/2009	Sony	86.5
7	Twilight	03/21/2009	Summit	82.6
8	Marley & Me	03/31/2009	Fox	80.1
9	Role Models	03/10/2009	Universal	79.8
10	Knowing	07/07/2009	Summit	78.5
11	Pineapple Express	01/06/2009	Sony	77.6
12	Lakeview Terrace	01/27/2009	Sony	74.8
13	Righteous Kill	01/06/2009	Overture Films	73.6
14	Changeling	02/17/2009	Universal	72.5
15	Slumdog Millionaire	03/31/2009	Fox	70.4
16	Valkyrie	05/19/2009	MGM/Fox	69.3
17	Body of Lies	02/17/2009	Warner	68.7
18	Burn After Reading	12/21/2008	Universal	68.0
19	The Day the Earth Stood Still	04/07/2009	Fox	63.3
20	Bride Wars	04/28/2009	Fox	62.9

Source: Rentrak Home Video Essentials

Ranked according to combined DVD and Blu-ray rental revenue; by index, with the top title at 100 and all others listed as a percentage of the top title’s rental revenue.

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

• Topics
• Author

Related Content

 

By This Author

• EAA raises $113,000 for AIDS charities
• HASTINGS 40th ANNIVERSARY: CEO Marmaduke
• Hall of Fame adds DVD champions
• Abby in Wonderland
• Sneddon takes worldwide sales post at Disney
• » MORE

Sponsored Links