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SURVEY: Redbox customers 'try before they buy'

May 21, 2009

OAKBROOK TERRACE, Ill. — According to a recent redbox survey of home entertainment customers, conducted by NPD Group, the company projects that its customers will purchase approximately 77 million DVDs in 2009, which would account for about nine percent of the total DVDs sold this year. Of these purchases, an estimated 23 million will be the result of a customer trying the title at redbox first and then buying it at retail.
 
The survey found that redbox customers buy the same amount of DVDs at retail as the average Blockbuster and Netflix customer; however, 41 percent of redbox customers report they prefer to rent a movie at redbox before purchasing the DVD at retail. According to redbox's data, this conversion to purchase is approximately 10 percent higher among redbox customers than Netflix and Blockbuster renters.

According to the survey of existing redbox customers conducted in November 2008 by NPD Group, 20 percent of redbox rentals reflect customers who would not have purchased or rented DVDs before the introduction of redbox, but have come back to the industry because of the $1 per-night price and convenience. The same survey confirmed that 42 percent of redbox's active customer base is now renting more DVDs than before redbox entered the industry.

"Redbox customers are passionate and active in both the rental and retail space," said Mitch Lowe, chief operating officer for redbox. "As the company's retail footprint and customer base continue to grow, so will redbox's investment and positive impact on the DVD industry."

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