Online movie streaming in U.S. to top DVDs for the first time in 2012

By on March 26, 2012 at 7:05 PM.

Online movie streaming in U.S. to top DVDs for the first time in 2012

Online movie streaming in the United States is expected to top both DVD and Blu-ray use for the first time ever in 2012, according to a study from IHS Screen Digest. The study suggests that in 2012, Americans will legally stream 3.4 billion movies online — twice the 1.4 billion streamed in 2011 — while DVD and Blu-ray movies watching this year will to 2.4 billion from 2.6 billion in 2011. Last year, the unlimited-streaming services offered by Netflix and Amazon Prime accounted for 94% of all paid online movie viewing in the U.S. Additionally, consumers paid an average of $0.51 for every movie streamed online, compared to $4.72 for DVD and Blu-ray discs. “We are looking at the beginning of the end of the age of movies on physical media like DVD and Blu-ray,” IHS analyst Dan Cryan said. “But the transition is likely to take time: almost nine years after the launch of the iTunes Store, CDs are still a vital part of the music business.” More →

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Redbox ups daily DVD rental fee to $1.20

By on October 28, 2011 at 6:55 PM.

Redbox ups daily DVD rental fee to $1.20

Following parent company Coinstar’s third-quarter earnings report, Redbox announced that daily DVD rental fees have increased to $1.20 from $1. “The price change is based on an increase in operating costs, including higher debit card fees that went into effect October 1,” Redbox said in a statement on its website. “This is the first time in eight years Redbox has raised our daily DVD rental price.” Redbox will continue to charge $1 for the first day of each DVD rental during a promotional period from October 31st through November 30th, though additional days will be charged at the new rate of $1.20 per night. Rates for Blu-ray ($1.50 per day) rentals and video game rentals ($2 per day) are not affected by this change. More →

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Netflix abandons plans to spin off ‘Qwikster’ DVD business

By on October 10, 2011 at 9:44 AM.

Netflix abandons plans to spin off ‘Qwikster’ DVD business

Netflix on Monday announced that it will abandon its plan to spin off the company’s DVD rentals-by-mail service. The home entertainment giant announced last month that it would break off its DVDs-by-mail service into a separate company called “Qwikster,” allowing it to focus on the Web-based content that represented the future of its business. “It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Netflix CEO Reed Hastings wrote on the company’s blog. “This means no change: one website, one account, one password… in other words, no Qwikster.” Shares of Netflix stock jumped more than 11% in pre-market trading on the news. Netflix lost more than 30% of its market value since the company first announced its Qwikster spin-off. More →

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