Rentrak reports that U.S. home video rental revenues grew during Q1 2005

VIA The Media Stock Blog.

Consumer spending in both the brick-and- mortar and online channels reached $2.44 billion, up 3% from the $2.38 billion spent last year.

Revenue from traditional a la carte rentals along with on and offline subscriptions were up 0.6% year-over-year, while sales for combined DVD/VHS previously-viewed titles were up an extraordinary 23% from last year.

"While the VHS format is certainly on a downward trend, the market is being lifted by consumers' transference to DVDs and migration to online channels," said Brad Hackley, Vice President of Business Development for Home Video Essentials™ at Rentrak.

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I think this shows that Netflix is making the home video business grow faster.