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NPD Survey: Consumers May Tighten Entertainment Spending

22 Apr, 2008 By: Chris Tribbey

A new consumer survey study on entertainment spending from The NPD Group shows current economic concerns may take a toll on a category that's usually recession-proof.

Only 18% of the more than 11,000 consumers surveyed said they plan on spending more on entertainment this year compared to 2007. Thirty-seven percent said they plan on spending less, while roughly half of consumers said they would spend the same. The full results will be published in NPD's upcoming “Entertainment Trends in America” report.

Consumer spending on DVDs and Blu-ray Discs is up in the first three months of 2008 compared to the same period in 2007, according to Home Media Research. But the NPD study suggests that may not hold all year, as consumers who said they planned on spending more on entertainment are focused on obtaining new hardware, not new content.

“This finding indicates that the industry will have to work harder to successfully market entertainment content to this group of consumers,” a summary of the report read. “The uncertain state of the U.S. economy, and worries about disposable income had little to do with these consumers' entertainment spending outlook.”

“Entertainment has historically been a reasonably recession-proof spending category,” said Russ Crupnick, entertainment industry analyst for NPD. "But in the 2001 recession there were a spate of new gaming platforms, DVD was a relatively new format, and music CDs hadn't yet suffered the full onslaught of digital downloading.

“It appears from our recent consumer surveys that the current economic climate might be more challenging for those who make and sell entertainment products."

For more information, visit www.npd.com.

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