A new report released by the Adams Media Research company indicates subscription-based services and rental kiosks will increase in popularity as less viewers decide to head to brick and mortar stores to rent movies.
Stores such as Blockbuster will still be able to generate up to $4 billion through 2013, according to Adams Media Research, but Netflix, Redbox and similar services are eating into the profits of traditional stores.
For example, B&M movie rental places last year controlled 68 percent of the movie rental business, but will drop down to 48 percent by 2013.
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"It is clear that the video rental industry is a strong beneficiary of the current economic crisis," Pali Capital analyst Stacey Widlits said in a statement. More consumers are willing to rent a movie for a $1 or $2 per day, rather than purchase it for $19.99 or more, with rental kiosks being rolled out in convenient locations.
Blockbuster already noticed this happening, and has been forced to offer online movie rentals -- a move to try and counter the success and popularity of Netflix. It should be interesting to see how B&M locations are able to combat movie rentals either by mail or in grocery stores and shopping malls.
