DEG Study: Blu-ray Favored Over Downloading

By : Thomas K. Arnold | Posted: 14 Nov 2008
tarnold@questex.com

Blu-ray Disc’s prospects for the future appear bright, despite slower-than-expected sales attributed in part to the down economy.

An independent study found HDTV owners familiar with Blu-ray favor the format over downloading and streaming by a margin of nearly 10-to-1, with about 70% of respondents citing the fact that there’s a physical disc to keep as a key factor in their decision to buy Blu-ray.

The study, conducted this fall by market research firm SmithGeiger on behalf of DEG: The Digital Entertainment Group, surveyed more than 1,100 HDTV owners in the United States and another 500 in Japan and 500 in the United Kingdom.

Respondents were asked to share their views on various forms of HD media, including digital downloading, streaming and Blu-ray Disc.

The study found 96% of Blu-ray Disc users are familiar with downloading and streaming services, but that two-thirds believe watching a movie on Blu-ray is a better overall entertainment experience. Nearly nine out of 10 Blu-ray users said they would likely recommend the format to potential buyers.

The survey also found that 28% of HDTV owners already own at least one Blu-ray Disc player, either standalone or PlayStation 3. By significant margins, these Blu-ray owners say the packaged media format beats both DVD and VOD in picture quality, sound quality and extras. Blu-ray even received high marks for title availability, a testament to the Hollywood studios’ concerted push to release high-profile product on the format. According to The DVD Release Report, there are now more than 1,000 Blu-ray Disc titles either already in stores or in the pipeline.

The DEG findings are contained a white paper report, ““HDTV Owners: The Prospects for High Definition Media,” that was presented today to media and analysts in Los Angeles.

At that presentation, Chris Lang, SVP of SmithGeiger, said he is surprised at Blu-ray’s strong showing, noting that he had initially expected digital downloading and streaming to fare better. But primarily because of the superior picture and sound of the high-definition packaged media format, he said, “even younger groups are tending toward Blu-ray.”

The DEG’s Amy Jo Smith said Blu-ray Disc software sales are rising fast, and the format just celebrated its 2 million-unit month. She said the DEG projects Blu-ray Disc sales will account for up to 20% of total sales of certain upcoming high-profile titles, including Warner Home Video’s The Dark Knight, the year’s No. 1 movie.

Blu-ray Disc has been in the market since June 2006, but adoption was stymied by a brutal format war with another high-definition disc format, HD DVD. Both formats offered picture quality about six times better than standard DVD. The format war ended last February when HD DVD backer Toshiba pulled out of the race, and Blu-ray Disc now enjoys the exclusive support of all six major studios as well as minimajor Lionsgate and a growing number of independent suppliers.

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Commented by Anonymous
Posted on 2008-11-16 22:46:16

This article is rather ambiguous! First off, only about 34% of American households have HD/ready TVs (out of 112.8 million households with any form of TV). Secondly the key word in the 2nd sentence is "familiar." Is that the name recognition? Or the actual difference in quality from standard/upscaling DVD? Personally, I am for owning physical discs. However, I have downloaded/streamed a much larger number of movies than I own. Which is another way that this article is ambiguous, it doesn't state that information. In addition I prefer going to Blockbuster and renting BluRay instead of buying them. With that in mind, if America builds a much needed superior highspeed Internet infrastructure, currently we are ranked about 15th in the world, BluRays future isn't going to be all that bright in my household.

Commented by Anonymous
Posted on 2008-11-18 05:52:39

In response to the other comment, I understand your opinion and I agree that for people who prefer to rent movies, such as yourself, downloading appears to be the best choice. However, for people who like to keep thair programs Blu-rays are much better. First, the extras. Although many people don't care about them, a large number of consumers do. Second, storage space. You can't keep several films and TV shows in your hard drive. Of course you can burn them to a media but despite of what a lot of people might think, recordable discs don't last forever, so sooner or later you will have to burn another copy, not to mention the increasingly cooler special edition packages. So until we get to the point (which I don't think will come in quite a while) where we have a service like today's cable companies from which we'll be able to download HD content instantaneously (for a price, again, similar to a cable service), I believe that Blu-ray is the only logical choice.

Commented by Anonymous
Posted on 2008-11-18 09:52:26

The only business that needs to worry about digital downloading now or in the future is the brick and mortar rental stores. The biggest downside to renting for consumers was the trip to the store to make their returns. I have no doubt that eventually, digital downloading will be the death of the brick and mortar rental stores. However, I also have no doubt that there will always be a robust market for ownership of physical media. The idea that consumers will turn exclusively to digital downloading is ludicrous. There are pleasures derived from owning a physical copy of your favorite movies, series or concerts that downloading can never replace. Both will live side by side for many years to come—they are not mutually exclusive.