DVD most popular home entertainment choice
PHYSICAL: NPD survey says Blu-ray at 7%, online at 3%
By Susanne Ault -- Video Business, 5/12/2009
MAY 12 | PHYSICAL: People overwhelmingly are choosing DVDs for their home entertainment, topping such options as video-on-demand and digital downloads, according to the NPD Group.
DVD and Blu-ray Disc purchases and rentals combined represent 88% of consumer spending on home entertainment, based on NPD’s results from a March 2009 survey. Breaking down consumer preferences, 63% of spending was on standard-definition DVD purchases; 18% DVD/Blu-ray rentals; 9% cable/satellite video-on-demand; 7% Blu-ray purchases and 3% Web-based downloads and online streaming.
The average survey respondent spent $25 each month on physical and digital home entertainment products.
NPD declined to compare this study with 2008 results because the company did not track Blu-ray sales and rentals a year ago.
Although Web-based activity remains low versus other entertainment choices, downloading and streaming is on the rise, according to NPD.
In the past three months, 9% of consumers with home Internet connections said they streamed a movie online. Last year, 5% of people said the same. Also, 8% said they rented an online movie, versus 4% last year.
Movie downloads on videogame consoles drew less than 5% of consumers.
Online consumers still crave physical product as well. NPD notes that eight out of 10 movie downloaders say they also recently bought or rented a DVD. That compares to 50% of the general population saying they just bought or rented a DVD.
Also, 25% of movie downloaders have bought a Blu-ray title, versus 5% of the overall population.
“While many in the home video industry worry that digital consumers might walk away from packaged media, that hasn't happened yet," said Russ Crupnick, entertainment industry analyst for NPD. "Discs are still and by far the dominant way Americans enjoy home video, but there is an increasing appetite for digital options. The good news is that the consumers engaging with digital video today also tend to be heavy consumers of DVDs and Blu-ray Disc, but it remains to be seen just how long physical discs and digital formats can co-exist."
