The data out today from DEG: The Digital Entertainment Group may suggest that the period of steep declines in home video spending — largely driven by the collapse of the DVD market — is over. But it also may just reflect the fact that the quarter had more popular movies: Films available on home video in the quarter did 12.5% better at the box office than did comparable releases last year. Whatever the reason, total sales of DVD and Blu-ray discs fell just 0.6% in Q1 to $2.06B; DEG says that Blu-ray now accounts for about a quarter of all disc sales. Throw in the $165M spent to buy digital files of movies and TV shows, and the sell-through market was up 0.5%. Digital vendors really showed their muscle in rentals. Spending on subscription streaming services such as Netflix was up 545.4% to $548.6M while digital VOD from providers including Apple’s iTunes was up 6.8% to $505.3M. Meanwhile, the rash of store closings at Blockbuster contributed to a 29.4% decline in rentals at bricks-and-mortar stores to $305M. And Netflix’s struggles with its DVD business helped to drive a 48.1% slide in subscription disc rentals to $348M. Bricks-and-mortar and subscription DVD rental services now individually do less business than pay TV’s VOD which was up 6.8% to $505.3M. Another winner: kiosk services led by Redbox. Their rocketed 30.1% to $523M. DEG says that consumers opened 2M UltraViolet accounts, enabling them to use mobile devices to stream the home videos they buy.
Related: Home Video Biz Still In Trouble Despite Industry Hype: Analyst

If studios started providing 3d blu rays to Redbox they can help drive revenue also. 3d content is not available for rental and the people like myself who love 3d would pay a premium price to be able to rent it…. I. E. $5-$6 per one night rental. I dont want to buy half the crap out there but would rent most of it just to watch once in 3d.
I strongly agree with the 3D post. There are several titles I want to see in 3D but I didn’t want to pay theatre or Blu-ray to own prices. If it was for rent @ Redbox for $2 or $3, I would see those titles. I still haven’t seen Green Lantern fox example. I like to rent before I buy, but renting a 3D movie in 2D is silly to me.