Movie kiosks & small rental stores grab Canadian market
With streaming video services such as Netflix dominating the rental market in the US, TV and movie rental sales in stores have now fallen to just about 20% of the US market share. Due to content licensing difficulties in Canada that make it difficult to run such streaming services there, 60% of TV and movie rentals in Canada involve picking up a movie from a store.
Despite Netflix launching in Canada two years ago, they are still struggling to become mainstream, but have so far claim to have doubled its customer base over the past year. Blockbuster in Canada has already gone bankrupt and even the competing service Rogers is stepping back.
The main rental services now taking off in Canada are kiosks. While they currently account for a fraction of the market, the companies that run them such as Zip.ca are rapidly rolling them out. Best Buy wants to double its number of kiosks to 130 by the year end. Redbox Automated Retail, the dominant kiosk operator in the US with 29,000 kiosks also intends expanding into Canada.
Smaller independent stores which have been struggling with the industry changes are also benefiting as the result of the closure of national chains and struggling streaming services. According to the Convergence Consulting Group, independent stores are will earn 75% of store-based revenue in 2012 compared to just 50% last year.
There are 0 comments
Most popular headlines
- Fri 15 Aug 04:08 by DoMiN8ToR
Several Windows 8.1 users complain their PC doesn't start anymore after installi...
- Fri 15 Aug 02:08 by DoMiN8ToR
Microsoft's Windows 365 cloud operating system seems to be a reality. Informatio...
- Thu 14 Aug 04:08 by DoMiN8ToR
The cybercriminals behind the SynoLocker ransomware, which secretly encrypts dat...
- Thu 14 Aug 07:08 by DoMiN8ToR
More traces of the tablet Google develops with HTC can be found in the Android s...
- Fri 15 Aug 10:08 by Kerry Brown
Microsoft intends to deliver a technical preview of their next operating system,...