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Industry Facts

  • Facts about the Home Video Market
  • Blockbuster forecasts 2 million subscribers to Blockbuster Online by Q1/06. Blockbuster intends to invest $120 million in their online business.
  • Netflix had 3.2 million subscribers by end of June '05.
  • Video rental is a $8 billion industry, on 3.2 billion transactions. DVD sales totalled 1.1 billion transactions. VOD and PPV totalled fewer than 350 million purchases.
  • McDonald's new machines hold 550 titles and are made by Solectron. They aim to have 1,200 machines by year-end 2005.
  • McDonald's reported that they estimate each Redbox machine yields $2,000 to $4,000 per square foot per year and each unit is profitable 3 months of launch. McDonald's charges $1 a day per title and offers top 40 DVD titles. McDonald's has 30,000 stores.
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