Video rentals top sales for first time since 2000 (people are pinching pennies in this economy)

[Omaha Steve]

Source: AP

By RYAN NAKASHIMA

LOS ANGELES (AP) - Americans spent more money renting home movies than buying them in the second quarter, marking only the second time that's happened in the DVD era. The big switch in consumer behavior shows the rising popularity of cheap alternatives like Netflix and Redbox and suggests people are pinching pennies in this economy.

Rental revenue rose 11 percent from a year ago to $2.06 billion, while sales of discs and digital purchases fell 15 percent to $1.93 billion in the three months through June, according to a report released Friday by The Digital Entertainment Group, an industry consortium of studios and electronics makers.

The resurgence of rentals is noticeable mainly because the DEG started including subscription plans such as Netflix's in the rental category this year, said executive director Amy Jo Smith. Still, she said consumer behavior is changing.

"It's not just from sell-through to rental. But people are looking at different ways of consuming media at home," she said.

Read more: http://apnews.excite.com/article/20110806/D9OUATCG1.html

[bananas]

1. Redbox has a nice droid app

Those vending machines are everywhere!

[Downtown Hound]

2. The economy? Yes. But also...

who really wants to buy movies anymore? You spend $30 or $40 per movie and your format is obsolete in five or ten years. And then that video collection you spent hundreds of dollars on is no good, and you have to start over from scratch. I amassed quite a large VHS collection and then a large DVD collection, but when Blu Ray came along I was like, screw it. It ain't worth it.

[jmowreader]

4. DVDs work in a Blu-Ray player

Any future physical video format will be based on 120mm optical discs, like CDs, DVD and Blu-Rays are, because it's so cheap to make them. I think there is a very good life ahead for physical video versus downloaded, simply because people don't want to pay repeatedly to watch their favorite movies. A movie you only plan to watch a couple of times, like most of the movies made in the last three years, makes sense to rent. But a classic movie you want to watch a lot? You'll buy that on disc and keep it in a library. (Also note: most of the streaming-video receivers on the market are built into Blu-Ray players, giving you the best of both worlds: stream Vince Vaughn movies, buy quality cinema.)

[AtheistCrusader]

7. Future physical media format will be storage of the consumer's choice.

If any at all.

Physical media is obsolete.

[JVS]

8. Lots of movies come in the bargain bin for $5 and are a good deal if you think you'll watch it at...

least twice.

[ejpoeta]

3. and you watch a movie once or twice and then what. it sits and collects dust. maybe for movies

like the disney ones the kids watch it might be worth it, but for most movies it isn't. you can just rent it, watch it and send it back and be done with it. and with netflix you don't have to worry about late fees.

[alp227]

5. "Video rentals" is an obsolete term...even though this study included Netflix

but still, interesting story. thanks for posting. anyway yeah the low price of renting movies combine with the preference of most people, and the fact that most people are too busy to be hardcore movie insiders, contribute to this.

[AtheistCrusader]

6. It just doesn't make sense to buy permanent media anymore.

In fact, it's plain stupid. How many dvd collections moulder in favor of BluRay's? How many standard BluRay's are going to moulder after the next level of technology that accomodates 1080p and 3d, and extended content, and the kitchen sink?

I've liquidated most of my DVD collection, and I'm not going to bother to buy BluRay shit, because there is no point. I keep just enough stuff on hand for my kid in the car for trips, and maybe power outages on the little battery portable dvd player. That's it. Online rentals from now on. Netflix and others. Not even bothering with Netflix mail-a-disc thing. Pointless. I can get things in the online store much faster, when I want it, and the library is always expanding.

(I also keep some rare DVD's that you just won't find in mainstream rentals. Scarecrow video for the win)

[DBoon]

9. I bet they don't count yard sales and thrift shop purchases

otherwise sales would still be tops

Yes the economy still sucks