HMM Article "DVD and Blu-ray Disc Still Heavy Favorites With Consumers" - High-Def Digest Forums
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Old 05-12-2009, 11:36 AM
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Arrow HMM Article "DVD and Blu-ray Disc Still Heavy Favorites With Consumers"

Seems about right at this point in time.

63% DVD Purchases
07% Blu-ray Purchases
18% DVD and Blu-ray Rentals
-----------------------------
88%

09% Video on Demand (VOD)

03% digital downloads and online streaming


http://www.homemediamagazine.com/hig...onsumers-15714

Quote:
DVD and Blu-ray Disc Still Heavy Favorites With Consumers
Home Media Magazine

By Thomas K. Arnold | Posted: 12 May 2009
[email protected]


By Thomas K. Arnold

New research from The NPD Group finds that a whopping 88% of consumer home entertainment dollars go toward DVD and Blu-ray Disc purchases and rentals.

The research firm's March 2009 update to its "Entertainment Trends In America" consumer tracking study found that the average U.S. home video consumer spent an average of $25 per month on all types of home entertainment.

Most of that money, 63%, was spent on DVD purchases; 7% was spent on Blu-ray Disc purchases; and 18% went to DVD and Blu-ray Disc rentals from retail stores, subscription services like Netflix or kiosks such as those operated by Redbox.

Just 9% was spent on video on-demand (VOD) and 3% was spent on digital downloads and online streaming.

When consumers were queried about all the ways they watched a full-length movie in the past three months, digital options were not widely used, although the numbers have grown over the last year. According to NPD 9% of consumers with home Internet connections streamed movies online in the past three months, up from just 5% last year; while 8% rented a digital movie download. Viewing movies downloaded through game consoles attracted fewer than 5% of consumers.

NPD research also found that 80% of digital movie downloaders also reported buying or renting a DVD, compared to just 50% for the population as a whole, while 25% bought or rented a Blu-ray Disc, versus 5% overall.

"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."

He noted that "consumers engaging with digital video today also tend to be heavy consumers of DVDs and Blu-ray Disc."

The NPD study was conducted online and is based on more than 11,000 completed responses from U.S. consumers.
Seems that the most likely people downloading are also heavy movie users in general and that Blu-ray for ownership and downloading for rental may be a strong tendency over time.

I'm in that category so it makes sense to me. I buy on Blu-ray and watch DISH and Netflix for some items, and watch TV stuff online, but I'll buy stuff on Blu-ray when the price is right and its available. Buy Blu-ray and rent online suits me just fine. But I'm not going to spend much on stuff I don't own.

Traditional video on-demand (VOD) at 9% from cable and sat is 3X digital downloads and online streaming at 3%.

Quote:
Most of that money, 63%, was spent on DVD purchases; 7% was spent on Blu-ray Disc purchases; and 18% went to DVD and Blu-ray Disc rentals from retail stores, subscription services like Netflix or kiosks such as those operated by Redbox.
Seems order of magnitude correct.
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Old 05-12-2009, 11:59 AM
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I buy everything mentioned in the report. It is a very rare occasion when I will rent. In percentages of my purchases it goes like this:

DVD's = 50%
Blu Ray = 35 %
HD DVD sales = 10 % (This one is slowly dwindling down to nothing. )
Downloads (iTunes movies) = 3%
Downloads (Bell Video) = 2 %


Maybe a couple of times a year I'll rent a Pay-per-view movie from my satelite provider. That's it for rentals though.

Peace.
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Old 05-12-2009, 12:05 PM
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Well I spend a lot more than $25 on movies, more if I count all my DISH services.

But I'm zero for VOD purchases and I only use free Internet like Hulu, so my paid movie purchases or rentals for the purposes of this study would be all Blu-ray purchases and Blu-ray or DVD rentals.

I'm probably

00% DVDs
75% Blu-ray purchases

25% Blu-ray Rental (Netflix)

But my DISH account is up there too, but not for any downloads or VOD
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Old 05-12-2009, 12:31 PM
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These numbers do not surprise me in the least. With download caps in place by all of the major ISPs one can bet that they will not escape single digits for the forseeable future. As far as I go at this moment I breakdown like this:

Purchases:
Blu-ray: 90%
HD DVD: 10% (Just bought 6 more for $23 after shipping.)
DVD: 0.0%

Rentals:
Blu-ray: 97%
DVD: 3%
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Old 05-12-2009, 12:41 PM
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Stats are meaningless in a vacuum. Did these go up or down? Did they stay the same?

NPD posted details on spending before:
DVD Sales Flattening, But Don't Blame Digital Downloading
Quote:
HOLLYWOOD, CALIF., September 16, 2008 – DVDs are still the most popular format when it comes to how U.S. consumers choose to purchase movies and other video content. On average, U.S. consumers spend $8 out of every $10 of their budgets buying or renting DVDs, according to information presented today by The NPD Group’s Senior Industry Analyst for entertainment, Russ Crupnick, at the DisplaySearch HDTV 2008 Conference in Hollywood, Calif. Less-than one percent of Americans’ movie budget is currently spent downloading movies and TV shows from the Web.

“Everyone is guessing when video on demand and digital downloads will spell the end for packaged media” Crupnick said. “At this point, though, digital video is still an extremely small part of overall consumer entertainment spending.”

According to information from NPD’s recent “Entertainment Trends in America” report, 41 percent of dollars budgeted for movies and video was spent on DVD movie purchases, 11 percent for purchases of TV programs on DVD, and 29 percent on DVD rentals (including Netflix and other video-subscription services). In addition, 18 percent is spent on movie tickets, but just 0.5 percent is currently spent on renting or purchasing TV shows or movies in digital format from the Web.

[Continues at above link]
Previous numbers did not break out Blu-ray. But, they do show an uptick in spending. But, at the same time... they included more data points. Some of the numbers are skewed as it looks like the percentages included movie ticket purchases in past reports.

The biggest, albeit still tiny, is the step up in digital downloads. From 0.5% to 3.0%... but given the old numbers included theater admissions and the numbers are tiny, it's hard to say what's going on there.
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Old 05-12-2009, 12:46 PM
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Quote:
Originally Posted by comixguru View Post
Stats are meaningless in a vacuum. Did these go up or down? Did they stay the same?

NPD posted details on spending before:
DVD Sales Flattening, But Don't Blame Digital Downloading


Previous numbers did not break out Blu-ray. But, they do show an uptick in spending. But, at the same time... they included more data points. Some of the numbers are skewed as it looks like the percentages included movie ticket purchases in past reports.

The biggest, albeit still tiny, is the step up in digital downloads. From 0.5% to 3.0%... but given the old numbers included theater admissions and the numbers are tiny, it's hard to say what's going on there.
You have to admit though that downloads are dead in the water until caps become much larger or are eliminated completely. Caps are acting like a dead weight for downloads at this point and that doesn't look to be changing anytime soon. ack menctioned this last year before any of the ISPs had adopted caps yet and he talked about how they would dramtaically the adoption of downloads.
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Old 05-12-2009, 01:41 PM
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I'm not convinced that caps have anything to do with it, I think it is more just habit. Going out to the rental store is an outing and is something that most people have done for more than a decade. That goes for movie purchases as well. If people were going to go for digital downloads over a tangible physical object, they would have done that by now for consumer goods etc. Most people still go to the store to go shopping instead of going on-line.
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Old 05-12-2009, 02:03 PM
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Quote:
Originally Posted by JAC35 View Post
I'm not convinced that caps have anything to do with it, I think it is more just habit. Going out to the rental store is an outing and is something that most people have done for more than a decade. That goes for movie purchases as well. If people were going to go for digital downloads over a tangible physical object, they would have done that by now for consumer goods etc. Most people still go to the store to go shopping instead of going on-line.
Ahh, you forget. Before there was DVD rentals there was VHS(and to a lesser degree Betamax) rentals. Renting movies has been going on since the late 1970's. Three decades of habit to break.

Peace.
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Old 05-12-2009, 06:20 PM
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Blu-ray went from less than 1% to 7% in a year. Digital downloads and online streaming went from 0.5% to 3% in a year IIRC. VOD is pretty much flat and DVD is slightly down.

Looks like Blu-ray rentals are offsetting DVD rental declines.
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Old 05-12-2009, 07:42 PM
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Quote:
Originally Posted by HD Goofnut View Post
You have to admit though that downloads are dead in the water until caps become much larger or are eliminated completely.
I have to admit that I find it hard to find something to latch on to with regards to downloads for ownership vs. caps. If you ask me, either side here currently has good criticism for caps curtailing future business... or for it not being a big detriment. There's a lot that is happening, but there's more that hasn't happened yet, too.

Caps are being trialed and are in place in certain places. Broadband companies are serious and upfront about this move. Customers are finding their terms of service in areas are being changed to show a new cap. For some, they are a reality today.

At the same time, public outrage over the TWC caps clearly had impact on the movies of the cable company to expand their trials. It's most likely that illegal P2P bandwidth triggers most caps today, but would the situation be different if it's legal services people are trying to reach?

I know subscription businesses will not give up finding a way to kick up income for those customers who make great use of their services. They are tenacious and full of people who's future and bonuses are based on upticks in revenue metrics. Such terms of service enforcement like putting in caps are a tried and true ARPU racket. These companies will succeed one way or another to make more money out broadband internet. Will this be caps or something else?

I also know that technology and business tend to work out problems over time. Will competition from other providers keep this from ever spreading widely? Will content compression get better and better? Will content providers cut deals with major broadband providers to allow people to use their services cap free? Will download companies cut a deal with a wireless provider to push content via 4G LTE to endusers? Who knows what the future will bring.

You can go back and forth on this forever.
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