Redbox put Blockbuster under immediate pressure as the daily kiosk rental service exploded in popularity, but rental kiosks now have their own fight to deal with. Research group In-Stat believes digital movie revenue will dramatically increase through 2014, with Redbox and other physical services struggling to keep up with streaming services.
From 2009 to 2014, DVD and Blu-ray movies (physical disc sales) will see a market decline around $4.6 billion, In-Stat research notes. This decline will also lessen the appeal of rental DVDs and Blu-rays from Blockbuster and movie rental kiosks in grocery stores, malls, and fast food restaurants.
"The convenience and utility of online offerings are simply too compelling,” noted In-Stat analyst Keith Nissen. "Online rentals permit the selection of any movie or TV program from [a vast] VOD library. Ultimately, it will be impossible for physical disc kiosks [Redbox and Blockbuster Express] to compete with the in-home or in-store download-to-rent business model.”
The threat of streaming content isn't just isolated to content partners, as console makers embrace streaming services for gamers. For example, Netflix and other streaming services are available through the Microsoft Xbox 360, Sony PlayStation 3, and Nintendo Wii game consoles -- TV episodes and movies will continue to find their way streaming into the living room.
However, some companies have been able to find ways to press on and find success in a drastically changing market landscape. Netflix has evolved from a rental company focused on mailing DVDs to a company with an emphasis on streaming content. The company recently launched its own $7.99 streaming only plan. Netflix also continues to add new content partners to its growing list of partners, including ABC-Disney and other long-awaited partners.
In addition to a wider content catalog, I like that streaming movies always have reliable video streams. I've encountered scratched and otherwise damaged DVDs rented from Redbox, Blockbuster, and similar services. When that happens, you have to get a new copy, which can cause a week's delay in watching a film. With Netflix streaming video, there are rarely issues that will interrupt your consumption.
