By Jeffrey Goldfarb
LONDON (Reuters) - The online DVD rental market is expected to capture a quarter of all video rental spending in the United States and one-third in Europe by 2009 as consumers get more comfortable paying for the convenience of receiving Hollywood blockbusters in the mail.
Market research firm Screen Digest said on Tuesday that by the end of 2005, 6.3 million subscribers will have spent more than $1 billion renting DVDs over the Internet, with the market seen tripling to almost $3 billion in four years despite the growing threat of video-on-demand services.
"Our cash-rich, time-poor society values convenience very highly, and is willing to pay for it," Screen Digest analyst Angus Wood said.
The U.S. online rental business is led by industry pioneer Netflix, while in Europe the diverse number of players has led to speculation of rampant consolidation.
Via Reuters
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