Inclination in the growth of internet subscribers and the resurging personal disposable income expected to lead to future growth
Online PR News – 02-July-2013 – Delhi – New Delhi: 28/6/2013- The market for video rentals in the US is changing at a brisk pace. The advancement in the technology and the growth of internet subscribers as well as competitive pressures has significantly altered the market over the last few years. The industry in the US has been undergoing a technological change with the increase in the growth of digital video rental industry consisting of subscription streaming and internet video on demand which have been the major growth drivers of the industry. The competition is expected to intensify further with an inclination in the trend of watching movies online freely instead of renting it. With intense competition among the major players in terms of the prices charged for rentals and from external pressures from retailers, the major players in the industry are aiming to develop by providing downloads over the internet.
Though the physical discs still hold prominence in the overall retail landscape of the US video rental industry, the popularity of the same has been vanishing among the people. The growth of the video rental industry in the US has been impacted directly by the growth of digital video rental segment with a significant contribution of blu-ray disc which contributed massively to the development of the video rental industry in the US.
Brick and Mortar stores were used to be widely popular among customers in the US especially for DVD rentals in the past. However, with the advent of technological advancement such as kiosks and physical subscription, the market for brick and mortars stores for renting movies has declined considerably in the US in the last few years. Video on Demand (VOD), referring to a system that allows users to watch content on the internet whenever they choose to do so is going to a major growth driver of the industry in the coming years. Most VOD vendors such as Amazon.com and Apple have video rental stores in the US. The upcoming of such stores in the US is completely restructuring and redefining the video rental business in the country.
It is predicted that the major players such as Netflix and Coinstar are expected to incur huge investments in streaming content and will emphasize more on innovations. The companies are planning to use brochures and flyers distributed across movie theaters and different retail outlets for penetrating further in the market. -VOD providers such as Amazon, I-tunes, vudu, zune and others are expected to contribute significantly in the growth of internet video on demand market in the country in the near term.
According to research report, “The US Video Rental Industry Outlook to 2017- Subscription streaming and Internet Video on Demand to Sustain the Future Growth” with varying consumer preferences, demand is shifting towards the digital video rental market. In addition to this, there is an ongoing trend of DVD rental kiosks and it is expected that a considerable portion of video rental market in the US would shift to kiosks over the next three years for those who rent video through physical channels.
Thus, it is forecasted that with increasing options of downloading movies and videos online for free due to the available torrents, the industry for rentals will grow but at a moderate rate of 48% from 2013-2017 and will be largely sustained by internet video on demand and subscription streaming in the next five years. Thus, the digitalization in the video rentals is estimated to drive the overall video rental business in the US in future at a moderate pace over the next five years.
The report provides detailed overview on the video rental market of the US and aids readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, video rental companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.
For more information on the industry research report please refer to the below mentioned link: