- DVD sales declined for a third straight year in 2009
- In contrast to DVD sales, DVD rental remains healthy (demonstrated by the usage of movie rental kiosk machine, according to a recent survey by The Nielsen Company).
- Renters less likely to buy DVDs: Findings suggests that buy rate among households renting a movie on DVD/ Blu-ray declined by 11% in 2009, compared to a 7% decline among all disc-buying households. In addition, survey results indicated that 34% of these renting households had rented a movie from a kiosk. Households renting from kiosks are increasingly doing so (63% reported to have rented more movies from a kiosk in the past 12 months.
- Wealthier suburban parents buy from kiosks: Demographically, disc-buying households who also rented from a kiosk were more likely to have children under the age of 18 and skewed towards a suburban lifestyle when compared to the average disc buying household. Despite the value proposition of renting a movie from a kiosk for a dollar a day, these households are more likely to be on the upper end of household incomes.
This research comes to me as no surprise at all. The consumer behavior reflected in this study is very indicative of the adjustments consumers are making to live through this turbulent econimic period. Personally, this is a classic example of “Prioritization” where consumers have started to prioritize what’s important to them and what’s not.
Via: Retailer Daily