• January 17, 2011

So much for the human touch: For the first time, the NPD Group reports that people rented more DVD and Blu-ray discs from kiosks, such as Redbox, than from all retail sources in the third quarter.

Year over year, the Port Washington, N.Y.-based market research company says Kiosk video rentals are up 10 percentage points, while those rented from video stores declined 13 percentage points. Netflix and other subscription services now account for 41% of video rentals, with kiosks at 31%, and video stores at 27%.

"The rental landscape for DVDs and BDs continues to shift, and consumers are obviously responding positively to the perceived value and convenience of kiosks," it says in its release. "Traditional video retailers will no doubt experience even more competition in the coming year, as kiosks appear more frequently in grocery store chains, mass merchandisers, and quick-serve restaurants, and as competition intensifies from an assortment of on-demand rental offerings."