It seems that consumers are starting to get really fed up with the idea of renting discs, and the industry is starting to feel that impact.
According to a new report from Rentrak, consumers spent $5.6 billion on video rentals in 2011, a decrease of 3.4% from 2010. The truly scary part was what happened in the fourth quarter of the year when that drop accelerated to a drop of 21.3% year-over-year. At the same time, rentals at Redbox shot up by 28% showing that people are far more interested in convenience and price than hitting up the traditional stores.
While it may look like Redbox made up for the losses of the overall industry, that was an increase of their business, not the overall number, so the number of rentals took a definite nose dive in 2011. As we reported over the weekend, 2012 is set to be the first year where streaming video consumption surpasses DVD watching. With data such as this coming in about the rental market, one has to think that prediction is not that far off the mark.