News
DVDs remain the most popular format for purchasing movies and other video content in the U.S., according to The NPD Group’s “Entertainment Trends in America” report.
On average, U.S. consumers spend $8 out of every $10 of their movie budgets buying or renting DVDs, the report found. And less than 1 percent of consumers’ movie budgets are 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,” said Russ Crupnick, NPD’s senior industry analyst for entertainment. “At this point, though, digital video is still an extremely small part of overall consumer entertainment spending.”
According to the 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, NPD said.
“A growing number of Americans are going to YouTube and other sites for streaming video, but when it comes to paying for video content, they’re still focused on DVDs,” Crupnick said. “Though the near-term talk of a digital revolution is probably overblown, as we’ve seen previously in the music industry, new content delivery sources can quickly take root among consumers. That’s why many home video companies are aggressively pursuing digital strategies, because the inflection point will come – it’s just not coming tomorrow.”
Data from the report was based on a sample of more than 11,000 consumers, and results were balanced to reflect the Internet-connected U.S. population aged 13 and older.
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