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Booming TV DVD Market Attracts Big Buyers

10 Nov, 2005 By: Judith McCourt

The TV DVD market is growing at a much faster rate than the overall DVD market, and that's good news for mass merchants.

Consumers who buy TV DVD buy more DVDs, more consumer electronic products, more games, more health and beauty aids, more groceries and more of just about everything than the average buyer.

Typically, they are women who shop at mass merchants. They're more affluent and have a bigger library of DVDs than the average DVD buyer.

That's according to a study of 600 U.S. consumer households conducted in the third quarter of 2005 by Home Media Research, as well as Nielsen VideoScan's Homescan panel that tracks purchases made in more than 90,000 U.S. households.

One-third of all DVD buying households said they bought TV DVD, according to the Home Media study. The average TV DVD buyer bought 25.4 DVDs, compared to the 17.8 that the average DVD buyer picked up in the past year. Of the 25.4 DVDs purchased by TV DVD buyers in the past year, four were TV DVDs.

It follows that TV DVD buyers also own more discs than other DVD buyers. The Home Media study pegs the average collection size of a TV DVD consumer at 100.3 discs, compared to 71.9 discs for other DVD buyers.

Households that purchase TV DVD tend to be younger and more affluent than the average DVD buying household, according to the Homescan panel.

TV DVD buyers are more likely to be young singles or childless younger couples.

The Home Media study found that the buyer was more likely to be female (59 percent). More than 80 percent of TV DVD buyers were under 50, and half (53 percent) were under 40. Three-quarters of the TV DVD buyers had a household income of more than $40,000, and more than half (54 percent) of more than $60,000.

Reflecting the higher income of the TV DVD buyers, Homescan panel findings showed that households that bought TV DVDs spent more on buying DVDs more often. The TV DVD buyer on average spent just less than $400 annually buying discs, compared to about $225 for the average DVD buyer, according to the panel. They made disc purchases 13 times per year, compared to just a little more than eight for the average DVD buyer.

TV DVD buyers overwhelmingly cited collectability as the No. 1 reason for buying TV series and shows on disc, according to Home Media research. Half (51 percent) cited the need to own a series as a reason for purchasing TV DVDs; 35 percent cited the desire to see the show again; and 20 percent the desire to view a missed episode.

The migration from single-disc sets to pricier multidisc sets is a driving driving factor in the enormous revenue (projected to be about $3 billion this year) TV DVD generates. Almost 70 percent of the TV DVDs released this year have contained two or more discs, and more than half are multidisc, according to The DVD Release Report. The average multidisc set price is $45.83, a 115 percent premium over the average DVD price ($21.28).

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