For the first time, more people rented videos from kiosks during the third quarter of last year than they did from video rental stores, according to researchers NPD Group. According to its VideoWatch study, the share of rentals from kiosks rose 10 percent from the same quarter a year ago while rentals from video stores declined 13 percent. Nevertheless, Netflix and other subscription services exceeded both, comprising 41 percent of video rentals versus 31 percent from kiosk rentals and 27 percent from store rentals. However, subscription rentals rose only 2 percent in the quarter. In a statement, Russ Crupnick, entertainment industry analyst for NPD, said, "Traditional video retailers will No Doubt experience even more competition in the coming year, as kiosks appear more frequently in grocery store chains, mass merchandisers, and quick-serve restaurants, and as competition intensifies from an assortment of [video-] on-demand rental offerings."
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