Market research company NPD Group reported that physical media represented 62% of all movie rentals for the first half of 2012 while digital rentals from pay TV and VOD represented 38%. Physical media included rentals from video stores, as well as kiosks operated by Redbox and Blockbuster Express, and the popular NetFlix Movies by Mail service.
Movie rentals as a whole declined 10% from the previous year. Digital rentals were up 5%, not enough to offset a 17% decline in rentals of discs.
Russ Crupnick, NPD Group's senior vice president of industry analysis, noted that "Kiosk and subscription internet streaming are generating strong user satisfaction ratings, including future rental intent, price, and value, which is reflected in market share gains."
Here is the breakdown of current movie rental marketshare according to NPD:
2% Internet VOD
11% PAY TV VOD
25% Subscription streaming
14% Brick and mortar
20% Subscription DVD/BD
The press release on the NPD Video Watch VOD report can be found here.