There is a very distinct trend in video rentals. Kiosk rentals are increasing rapidly, as kiosks appear more frequently in grocery stores, mass merchandisers, and quick-serve restaurants, according to research by the NPD Group.
Kiosks rentals are expanding rapidly that I wouldn’t be surprised if kiosks are available at gas station convenience stores in the near future. In fact, Kiosk rentals have grown way faster than DVD rental subscriptions (ala Netflix), which have only grown 2% in the last year. Kiosk rentals are popular for 2 reasons;
1. They are relatively cheap at around $1 per day for a DVD rental
2. They are easily accessible – one could simply rent a DVD on the way home from the grocery store;
On the other hand, In-store rentals, such as that provided by Blockbuster stores, are dying a slow death. In the past year, in-store rentals have decreased from 40% of all video rentals to 27% (a very significant drop). In-store rentals will drop even further as consumers are drawn to DVD rental subscriptions, kiosks, and more importantly to on-demand online subscriptions.
The story for kiosk video rentals will not always be rosy. they wil eventually go the same way as in-store video rentals. I predict that in 5 years time, on-demand movie rentals will be the rage and kiosk rentals will have begun its own slow death.