In only seven years since its introduction by Netflix, online subscription rental has grown to $1.3 billion in annual consumer spending. By 2006 it accounted for 15.9% of U.S. rental spending, up from 2.8% just three years ago. The adoption of online DVD subscription rentals, coupled with the maturation of the DVD sell-through market, is projected to halt the five-year decline in the overall rental market this year. It is a rare business that gets the chance to reinvent itself and thereby halt what had seemed to be an inevitable decline in its fortunes. But that appears to be exactly what the online subscription model is doing for the video rental business.

In the report:

Online DVD Subscription: Reinventing Video Rental, a management report from Adams Media Research, represents the first analysis of the long term impact of the online rental/mail delivery model on the overall rental market.
The report features the updated and expanded AMR Online Subscription Rental Model, covering the history of online subscription beginning in 2002 with projections to 2011. The model includes total market projections for subscription counts, average subscription pricing, and consumer spending, with a first time look at projected year-end subscriber growth by competitor.

Analyzes the Impact of Blockbuster Total Access
Online DVD Subscription: Reinventing Video Rental includes a discussion of the impact of Blockbuster's Total Access program, Netflix's Watch Now option and the impact of other recent competitive initiatives on the traditional in-store and online rental segments. Netflix vs. Blockbuster share of sub gains by quarter are analyzed before and after the launch of Blockbuster's Total Access program.

Most Comprehensive Review of Market
This report includes a review of the history of online DVD rental, the in-store subscription response, the status of the market today and a look at the future. Online DVD Subscription: Reinventing Video Rental is 22 pages in length with 14 charts, tables, and models that cover the following:

• Total video rental consumer spending and studio revenue 2001-2006
• Video rental vs. sell-through spending change by year 2001-2006
• Netflix net subscriber additions 2002-2006
• U.S. video rental spending by type 2002-2008
• 2006 rental retail share by outlet type
• Netflix and Blockbuster Online net subscriber additions by quarter Q4 '05-Q1'07
• Netflix subscriber acquisition costs 2002-2006
• Netflix churn and free subscriber ratios 2004-2006
• Online subscription rental service comparisons for Netflix, Blockbuster, Intelliflix, and Gameznflix
• Combined online Net subscriber additions by year 2002-2011
• Online subscription rental share of total rental 2003-2010

The report is available as a PDF and includes AMR's 2006 Rental Retail Share by Outlet Type, and the newly updated AMR Online Subscription Rental model.