Video rental still significant channel in USA European rental unable to recover

September 23, 2014  | Subscribers Only

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The US physical video market remains as rental focused in 2014 as it was in 2005. Despite an average annual decline of 7% in consumer spend on packaged media rentals share of spend remains virtually unchanged at 37% in 2014 compared to 36% in 2005. However, in key European markets video rental has declined faster than the overall market decline. Video rental in Europe was never as popular as in the US, and has become even less so, with share of video consumer spending declining from 20% of spend in 2005 to 11% in 2014. This divergent story of rental in two of the leading developed markets for packaged media has several key factors, including the success of kiosk rentals in the US and rental in Europe being a stigmatic proposition.

Highlights:

  • The US rental market has retained a 37% share of consumer spending on home video despite declines in the total market.
  • Video rental in key European markets has declined a head of the total market and account for just 11% of consumer spending.
  • Kiosk rentals have helped to soften the decline in US rental consumer spend since its peak of $8.5 billion in 2000.
  • Kiosk rentals struggle to gain traction in Europe entry into the market now is too late to reactivate rental consumers.

In this report:

  • The reasons behind the diverging rental markets in Europe and the United States
  • Rental consumer spending by channel
  • An evaluation of why kiosk rental won’t succeed in Europe

List of tables and charts:

  • European video spend by business model (%)
  • US video spend by business model (%)
  • US rental transactions by channel (m)
  • European rental transactions by channel (m)
  • US kiosk rental consumer spending ($m)

Number of pages: 5

Number of charts: 5

Geography
Germany UK USA
Organization
Blockbuster Netflix Redbox
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