DVD, disk rentals still surpass streaming

Streaming video may be cost-effective and convenient, but consumers are still renting more movies via the mail and physical retailers, writes CNET.

People renting DVDs and Blu-ray discs through retail stores, kiosks, and Netflix's mail service totalled more than 62% of all movie rentals in the first half of the year, according to NPD Group. In contrast, those renting digital movies via subscription streaming, pay TV video on demand, and Internet VOD added up to only 38%.

But while physical discs still rule the movie rental scene, digital movies are catching up, PC Mag reports.

Year-over-year disc rentals declined by 17%, while digital movie rentals increased by 5%, according to the report. The increase in digital movie rental orders is largely attributable to Netflix Watch Instantly.

“Kiosk and subscription Internet streaming are generating strong user satisfaction ratings, including future rental intent, price, and value, which is reflected in market-share gains,” Digital Media Wire quotes Russ Crupnick, senior VP of industry analysis for the NPD Group, as saying.

“Netflx is frequently the most popular video application on connected devices, so an increase in households with Web-connected Blu-ray Disc players, tablets, and smart TVs will lead to still more video streaming activity.”