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Viewing report
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Movie Rental Behavior and Proclivity to Use Online Movie Services
The Diffusion Group, July 2007, Pages: 64
Todays movie renters have a myriad of options for shopping, selecting, and receiving their movies, including brick-and-mortar video rental stores (e.g. Blockbuster);Pay-Per-View (PPV) or Video-On-Demand (VOD) services offered through their cable or satellite TV service; direct-mail rental services (e.g., Netflix), as well as online movie download (OMD) services (e.g., CinemaNow, Movielink, or iTunes). While all of these services compete with one another, few consumers use only one type of service; most choose instead to use the one that best suits their needs at the specific time.
This report examines the nature of rental habits among adult broadband users, as well as evaluates the interest and proclivity of online movie services use.
Three Key Findings From the Report:
- Among consumers who rented movies from a traditional video rental store, 15% also use a pay-per-view service, 14% use a direct-mail service, and 12% use a video-on-demand service for their movie rentals.
- Only 30% of adult broadband users are to varying degrees comfortable downloading movies from the Internet.
- It is imperative that movie rental services target the home TV, not a PC or remote device.
From the Report:
Direct-mail rental hasnt grown the video rental audience as much as it has stolen the most frequent brick-and-mortar renters.
The fact that those who rent from a video store tend to be less technologically savvy than other renters is a bad sign for the segment. As younger, more tech-affluent consumers age, they inevitably bring with them their unique rental habits; implying that brick-and-mortar stores will continue to become less popular as time goes by.
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