NPD: DVD, Blu-ray Dominate Home Movie Consumption

18 Apr, 2011 By: Erik Gruenwedel

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Transactional VOD penetration remains unchanged at 20%

More than 77% of consumers watched a movie on DVD or Blu-ray Disc during the past 90 days, compared with 21% who watched via transactional video-on-demand, according to new data from The NPD Group.

Despite much media attention and concerted marketing efforts by cable, satellite and studios to promote movies on demand in the home, consumer adoption continues stuck at 20%.

The Port Washington, N.Y.-based research firm said nearly 80 cents of every dollar spent on home video movies goes toward the purchase or rental of physical discs, according to data compiled from written surveys of nearly 10,000 respondents in March.

Respondents who viewed movies on physical discs reported watching an average of four hours per week, which is unchanged from the prior year. By comparison, 68% watched a movie on a TV or cable network channel, 49% at a theater and 21% via VOD. Respondents said 78% of their home video budgets went to the purchase and rental of DVD and Blu-ray, including online and in-store retail purchases and rentals, while 15% was spent on video subscription services like Netflix.

Respondents said 78% of their home video budgets went to the purchase and rental of DVD and Blu-ray, including online and in-store retail purchases and rentals, while 15% was spent on video subscription services like Netflix. Digital video downloads, paid streaming, transactional VOD and pay per view comprised the remaining 8%. Overall per-capita spending on home video fell by 2%.

“With the well-publicized struggles of Blockbuster and retail video stores closing around the country, and with media attention increasingly focused on the newest digital home video offerings, the value and importance of physical formats to the home video industry and to consumers is often overlooked,” said Russ Crupnick, entertainment industry analyst for The NPD Group. “Even though DVD sales and rentals are slowing, there is no evidence that consumers are abandoning physical discs for watching movies, even as the choices for viewing are expanding.”

That said, NPD reported that ongoing closures of video stores coupled with the fact that many consumers have already built DVD collections of their favorite catalog video titles and are becoming more comfortable using various digital video options resulted in a 9% decline in year-over-year physical disc purchases and rentals.

Year-over-year physical disc purchases and rentals fell 9 percent (not including rental subscriptions).

“We expect strong growth from many digital sectors, driven by connected devices, improving selection and the consumer’s endless quest for convenience,” Crupnick said. “For now, though, physical discs continue to lead overall engagement and spending by home video viewers; and even with increasing use of VOD and other digital formats, the primacy of DVD and Blu-ray in home video will continue for the foreseeable future.”

 

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