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U.S. Movie, TV, & Video Game Rental Market (2006-2009)
U.S. Movie, TV, & Video Game Rental Market (2006-2009)
U.S. Movie, TV, & Video Game Rental Market (2006-2009)
Market Revenue ($
million)
subscription)
Between 2006 and 2009, the film rental market underwent a major shift. The in-store
rental market declined by nearly $2 million, while vending machine rentals increased tenfold and
by-mail rentals nearly doubled. However, VOD services through cable, digital, and subscription
also saw major increases. All of these changes meant companies like Blockbuster and Movie
Gallery had to either reorganize and make a complete business model shift- or face bankruptcy.
Meanwhile, the increases in by-mail rentals and VOD subscription, two services that Netflix
offered, meant that the number of Netflix subscribers more than doubled in that same time frame.
Purchase decisions from customers were focused on convenient access, price, variety of DVD
offerings, ease of return/return fees. Therefore, the key success factors within the U.S. DVD