Carmel, Calif. - U.S. spending on online DVD rental services is expected to increase by 68% between 2007 and 2011, to $3.2 billion, or about 37.5% of the total video rental market, according to a report from market research firm Adams Media Research.

The online rental market is projected to grow 41% this year alone, to $1.9 billion.

Currently, Netflix commands 75% of this market, but Blockbuster's rival service added more subscribers (800,000) than Netflix for the first time in the first quarter of 2007.

"The five-year decline in the video rental market will finally end in 2007," said AMR senior analyst Eric Wiener, "due, in part, to an acceleration in the growth of online subscription rental fueled by consumer interest in Blockbuster's Total Access program."

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