New NPD Report Shows That Consumers Still Prefer Physical Discs Over Downloads
Despite the growing popularity of on-demand digital distribution, a new report by the NPD Group has revealed that consumers still spend most of their home video budget on buying and renting DVDs and Blu-ray Discs. According to the report, consumers spent 88% on DVD and Blu-ray Disc purchases and rentals with only 12% going toward video on-demand, digital downloads and online streaming.
According to The NPD Group, a leader in market research for the entertainment industry, watching movies and other video content on DVD and Blu-ray Disc (BD) comprises the lion’s share of home-video acquisition and viewing, even as newer digital methods are beginning to gain a foothold in the consumer market. In fact DVD and BD sales and rentals represented 88 percent of consumer spending on home video content, based on a survey that asked about home video consumption over the previous three months.
Results from NPD’s March 2009 update to the “Entertainment Trends In America” consumer tracking study, which provides an in-depth look at shifts in entertainment consumption, revealed that the average U.S. home video consumer reported spending an average of $25 per month on all types of home video purchases and rentals. When it comes to spending on home video content: 63 percent was spent on DVD purchases; 7 percent on BD purchases; 18 percent on DVD/BD rentals from retail stores, subscriptions or kiosks; 9 percent on video on-demand (VOD); and 3 percent on digital downloads and online streaming.
