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Netflix and Redbox Combine To Stabilize US DVD Rental

Summary.... Netflix' discs-by-mail subscription service and Coinstar's dollar-a-night Redbox kiosks appear to have stabilized the overall rental market in the US, which should post a 6% gain in 2009, the second year running of volume growth after six years of decline. But the gain in spending will be modest (+0.5%) as the growth is coming from these low-cost options, while traditional in-store rentals steadily decline. Increased rental volumes were not, of course, the studios' favored scenario, given the fact that they get less than a third of the rental dollar spent.
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