Netflix Share of Video/DVD Rental Market on the Rise
Blockbuster Moves into Online Subscriptions to Retain Market
Advantage
Laptop Battery PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Aug. 12, 2004--According
to recent reports in the news media, video rental leader
Blockbuster Inc. is set to begin offering customers DVD's delivered
to their home by mail, using the business model pioneered by online
DVD movie rental subscription service NetFlix Inc. According to
recent consumer information compiled by The NPD Group, this latest
move by Blockbuster might be a timely, strategic reaction to the
fact that Netflix enjoys a growing share of the movie rental
market.
According to NPD, Netflix's share of the rental market has
increased more than four percent -- from 8 percent of all movies
rented in the fourth quarter of 2003 to 12.5 percent in the second
quarter of 2004. In addition, as of June 2004 local rental shops
controlled 14 percent, which is a three percent gain in the same
timeframe.
Thinkpad By comparison, as of June, movie rental leader Blockbuster
controlled nearly 40 percent of the rental market, which is down a
little more than three percent since the final quarter of 2003. The
next largest chain, Hollywood Video, posted a net loss in share of
just under two percent in the same timeframe.
Microsoft "The video subscription concept pioneered by Netflix is
obviously coming of age," said Russ Crupnick, president of NPD
Music and Movies. "The fact that
Blockbuster has decided to leverage their long-standing industry
clout in an effort to appeal to a growing consumer segment shows
that the company remains serious about protecting their hard-won
equity in the video rental business."
Laptop Computers Source: NPD's VideoWatch collects video acquisition information
on a continuous basis from members of NPD's consumer panel of more
than 2.5 million registered members. Detailed purchase information
is collected from an average of 3,000 video buyers and renters each
week. NPD's video rental definition includes traditional store
rentals and subscription services. This information is balanced to
represent the U.S. population, age 18 and older.
Laptop Computer About The NPD Group, Inc.
Desktop Computer Since 1967 The NPD Group has provided reliable and comprehensive
sales and marketing information for a wide range of industries. NPD
provides critical knowledge on what is selling, where, to whom and
why to help our clients make more successful, fact-based business
decisions. Today more than 1,300 manufacturers and retailers rely
on NPD to help them better understand their customers, product
categories, distribution channels and competition in order to help
guide their business and positively impact sales and revenues.
Information from The NPD Group is available for the following major
vertical sectors:
apparel, appliances, automotive,
beauty, cellular, consumer electronics, food and beverage,
foodservice, footwear, home improvement, housewares,
imaging, information technology, music, software, travel, toys
and video games.
Notebooks About NPD Music and Movies
Lenovo NPD Music and Movies, a division of The NPD Group, provides
reliable in-depth perspective on the most important issues facing
today's music and video industry. MusicWatch and MusicWatch Digital
are the flagship information services that reports on what
consumers buy, as well as where -- and why. These two complementary
services provide a detailed look at today's music consumers,
covering such critical issues as consumers' habits related to
downloading music and burning CDs, key influences on music
purchases and customer viewpoints on specific retailers. NPD
VideoWatch tracks the purchase and rental of home movies, as well
as consumer habits relating to home video. NPD Music and Movies
provides the consumer insight needed to understand the
entertainment marketplace and discover where music and video
consumers are today - and where they'll be tomorrow.
Hard Drive Contacts
Travelstar
For The NPD Group, Inc.
Lee Graham, 212-333-4983
lee@leegraham.biz
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