Futuresource: 'Vast Majority' of Movie Consumers Still Buy Disc

24 Aug, 2016 By: Erik Gruenwedel

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Consumer adoption of transactional VOD and electronic sellthrough appears to be moving beyond the margin toward mainstream. But so too is packaged-media consumption, according to new from Futuresource Consulting.

The British research firm found the increase in the number of consumers buying digital movies is driving overall transactional VOD and EST growth, particularly in the U.K. and U.S. Yet, the “vast majority” of these consumers continue to purchase packaged video — with only 4% of video buyers just buying EST and not packaged video.

In a global survey of more than 16,000 respondents, Futuresource found that 16% buy digital content, with 48% of them citing early access, compared to packaged media and rental, as the main motivator. At the same time, 84% said they don’t buy or purchase digital entertainment.

Indeed, the majority of respondents (58%) watch live TV, with another 27% opting for recorded (DVR) programming. Notably, 8% consume packaged media (DVD/Blu-ray Disc), ahead of on-demand (6%) and subscription streaming (2%).

“There is a direct correlation between age and live-TV viewing, with 57% of the 16-35 age range most-frequently opting for live TV, rising to 60% of 36- to 55-year-olds and reaching 64% for 56-plus,” said Futuresource analyst David Sidebottom.

In the U.K., Sky’s “Buy & Keep” platform, which offers a DVD with each digital purchase, is gaining traction internationally as the satellite TV provider expands service in Europe. Usage has grown to 21% of Sky subscribers from 16% last year.

Meanwhile, Netflix usage remains highest in the U.S., exceeding 60%, and lowest in France (11%) and Germany (30%). Thirty percent of domestic respondents use both Netflix and Amazon Prime Video. Notably, movies are most popular among international Netflix subs; less so among domestic and U.K. subs.

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