Statistics from a briefing in the Economist about the home entertainment market, focusing on the disruptive force of Netflix and Redbox and others. These are the estimated revenues per US transaction that go to the studios. Note how much whether a customer buys or rents a film matters to the studio, and to a lesser extent the form of that sale and rental.
Electronic download: Almost $18
Blu-ray: $15
DVD: $12
VOD: $3.50
Video Store: $1.45
Subscription (Netflix): About $1.25
Kiosk (Redbox): $1
Assuming sufficient numbers of people would buy without an attractive rental option, the rental business is a massive and impressive transfer in value from the studios to consumers and the rental business. Another example of a similar phenomenon I plan to explore soon is the textbook rental market and companies like Chegg.
