Michael Pachter, an analyst at Wedbush Securities, published findings of a survey this week that suggest consumers are a little less likely to opt for the quickness and convenience of rental kiosks and streaming video services if a store offers comparable pricing.
The researcher was quick to point out, however, that businesses such as Netflix and Redbox would only continue to grow as consumers focused more on older content in the face of delayed new releases.
Pachter’s comments about the study of 2,500 consumers’ entertainment spending habits, as covered by Home Media Magazine, highlight some mixed results among respondents.
An across-the-board increase in people who rent movies via mail, streaming service and kiosk – plus the consequential decline in those utilizing their local video rental shop – lends credence to the notion that brick-and-mortar stores are in their death throes. Indeed, the survey found a 32% increase in people who believe video rental stores are pointless. The fall of Blockbuster ultimately expedited this consumer shift as its former customers flocked to competitors, he believes.
“Both Netflix and Redbox will continue to benefit from Blockbuster’s demise with Netflix likely to take many of its subscription rentals by mail customers, and Redbox taking its rental kiosk and brick-and-mortar store customers,” Pachter said in the note.
Blockbuster is currently in a period of transition after its April buy-out at the hands of Dish Network. Store closures have become the norm for the company after it filed for Chapter 11 bankruptcy protection last September, though Dish has hinted at plans to leverage the brand for a possible foray into streaming VOD. Usage of both Blockbuster Express kiosks and the company’s Total Access service fell by 6% and 10% respectively among those surveyed.
The survey also found that respondents were less inclined to buy movies or go to the theater than in the past. (Via Home Media Magazine)
Is a comparable price between store rentals, kiosks and streaming VOD important to you? Are you less likely to go out to see a movie in the theaters when there are so many options now at home? Let us know in the comment section.