Three types of consumers - Collectors, Minimalists and "Quick and Easy" and Blu-ray - High-Def Digest Forums
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Old 02-13-2011, 01:56 AM
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Three types of consumers - Collectors, Minimalists and "Quick and Easy" and Blu-ray

I thought these two articles together from Tom K. Arnold, the pucblised of Home Media Magazine (HMM) made a lot of sense together in the context of Blu-ray's growth and the decline in DVD revenues over time.

What do you guys all think?

Quote:
The Three Faces of Consumerism

By :Thomas K. Arnold | Posted: 09 Feb 2011
[email protected],

As a lifelong student of human nature I've always preferred authors like Faulkner and Hemingway, who wrote about the human experience I've spent quite a bit of time analyzing consumers of home entertainment. My conclusion: We are looking at three, not two, classes of consumer, each a distinct group with its own characteristics and personality traits that transcend their consumption of entertainment.

The first group, and the one that means the most to our business, is the collector. These are people who enjoy owning, and they will likely continue to buy movies on disc as long as they are available on disc. These people enjoy filing away their new purchases invariably, either alphabetically, by genre, or a combination of the two and show them off with pride to visitors. Collectors are the ones most likely to replace their DVD movie libraries with Blu-ray Discs and can't for the life of them understand why someone would rather rent than own, if the price is right. These disc collectors typically have shelves of hardback books and CDs in their homes as well, and continue to maintain photo albums, not trusting their hard drives or the Internet with their precious memories.

The second group is one we shall call the minimalists and I know plenty of them. They abhor clutter, and their homes are sparsely furnished. Rarely do you see a bookcase; their music is all on their computer; and they would never think of cluttering up their homes with DVDs or Blu-ray Discs not when they can rent them. Minimalists also were the first to embrace Netflix and streaming, and even in the old days, before DVD and the Internet, they frequented video rental stores or turned to cable and satellite for their entertainment needs. I have a minimalist friend who back when I was getting gobs of VHS screeners looked at me with pity. "I'd never want all that stuff in my house," he said. "HBO's got everything I need."

The third and last group I'll call "quick and easy." These consumers prefer the path of least resistance. If they happen to be in Walmart, buying groceries and school supplies, they'll pick up a cheap movie or two, just because it's there. Their first stop is the $5 dump bin; if, after about 20 seconds of browsing, they see nothing they like, they'll check out the new releases. They'll spend $15 for a new release its first week in stores, but not $20 the next week, when it is no longer on sale. Instead, they'll stop by the Redbox or Blockbuster Express kiosk on the way out, and rent something, anything, that happens to catch their fancy. The quick-and-easy crowd also tends to channel surf more than others; if they find something interesting, they'll stick with it, and if it's a movie, they'll watch all or part of it, even the commercials. It takes too much effort to skip through them. The quick and easy crowd doesn't value its purchases the way collectors do; walk into their homes and you are apt to see discs scattered all over the place.

As our nation ages, the first group likely will get smaller. Young people are growing up in a transitory world; they visit websites and watch YouTube videos that exist only in cyberspace and may or may not be there tomorrow. Still, this is not to say they won't become collectors as they get older, although in this world of fast-changing technology, I rather doubt it. The minimalist group will likely stay the same; I think this group, of the three, is the most unique, a class all in itself.

The biggest growth, the way I see it, will come in the quick-and-easy crowd. They have big appetites for entertainment but really don't care how they consume it, as long as it's, well, quick and easy.

And that, my dear reader, is the challenge facing studios and retailers alike: how do you attract consumers who see entertainment as just another commodity, to be selected, purchased and brought into the home without much thought or effort?

http://www.homemediamagazine.com/tho...es-consumerism

Quote:
What Really Killed the CD?

By :Thomas K. Arnold | Posted: 23 Jan 2011
[email protected],

A good friend of mine emailed me an interesting article the other day he had come across on CNET, the popular destination site for all things high-tech. The article detailed the imminent closing of one of Sony's two remaining U.S.-based CD manufacturing plants, in South Jersey, a move that will put 300 workers out of a job. A Sony spokesman said the plant, which was built more than 50 years ago to produce vinyl LPs, is being shuttered because of the still-troubled economy and ever-waning consumer interest in the CD.

The zinger: The article maintains the CD is dying not just because of the iPod and the digital distribution model it represents, but, rather, illegal file-sharing, a practice born more than a decade ago when the record companies, in a series of stupid moves, opened the doors to piracy by first killing off the single, since the birth of recorded music the only available sampling mechanism other than the radio, and then jacking up the list price of the CD to as much as $21.98. When consumers rebelled and began using the Internet to share music, the record companies didn't capitalize on the potential new business model of digitally distributed music, but, rather, took to the courts to fight their own customers. Ultimately they realized their folly and took a seat at the table--but by then, a transformative mindset change had already taken place. And it is this mindset change, that music is not something that must be paid for, continues to dog the music business to this day. As the CNET story says, "innovation isn't the only reason CDs look long in the tooth. After a decade of rampant illegal file sharing, they'd argue, the plant closure is a sign that the CD just couldn't compete with free."

The home entertainment industry has handled the digital migration in a much smarter fashion--aided and abetted by the fact that consumers will be a lot slower in giving up their DVDs and Blu-ray Discs than their CDs. The reason, of course, is that consumers have always bought music by the song, not by the album, and an individual song can be downloaded in a matter of seconds. It's cheap, a lot cheaper than buying a CD (remember, no more singles!), and it's easy. Our business doesn't work that way--no one buys a movie by the scene. Downloading a two-hour movie can take a lot of time, particularly if it's in high definition--and at $12 to $20 a pop, it can be as pricey a proposition as buying a DVD or Blu-ray Disc. No wonder electronic sellthrough, as this end of the business is known, isn't exactly taking off like wildfire--there's no compelling advantage over buying a physical disc.


Streaming, of course, is another story. The segment of the population that wants to own and collect movies, I believe, was artificially inflated by the novelty of the DVD. And now that things are settling back down to normal, consumers--at least a healthy percentage of them--are going back to rental, and more and more, they're doing it digitally, either through VOD or iVOD.

This brings us back to the original premise of the CNET story: That the CD was done in by file-sharing, not digital distribution. That danger lurks in our industry, as well. Granted, the same obstacle to EST exists in the shady underground as well: it's a hassle to download and share an entire movie. But the rash of mobile and portable devices that employ much-smaller file sizes--who needs high-definition on a three-inch screen?--is something we all need to be aware of. And as download speeds become faster and faster, ultimately there will come a day when a full movie, even in glorious high-definition, can be downloaded in a matter of seconds.

We need to be ready for that day. As the CNET story says, it's hard to compete with free.
http://www.homemediamagazine.com/tks...ally-killed-cd

Last edited by Kosty; 02-13-2011 at 02:36 AM.
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Old 02-13-2011, 01:59 AM
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Old 02-13-2011, 02:46 AM
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Originally Posted by GizmoDVD View Post

Thank you. Missed the other thread. I've added the second article to the ongoing discussion.

This thread will be closed as duplicative and I will continue the discussion there.


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