DVD Still Top Movie Format; Less Than 1% Spent on Downloads

Authored by Mark Hefflinger on September 16, 2008 - 10:11am.

Hollywood - Despite flattening sales, the DVD remains the most popular movie format in the U.S., as $8 of every $10 spent by consumers on movies go towards DVD sales or rentals, while less than 1% of Americans' movie budgets is currently spend downloading movies and TV shows from the Web, according to a report from market research firm NPD Group.

The report found that 41% of money budgeted for movies and video was spent on DVD movie purchases; 11% on TV programs on DVD; and 29% on DVD rentals, including via Netflix.

In addition, 18% is spent on movie tickets, but only 0.5% is spent on Web-based services.

Sixty-seven percent of those surveyed said they had watched a DVD they own in the past three months, while half had watched a rented DVD.

Eighteen percent had viewed a video-on-demand title; 8% watched a movie on a portable device; 6% had downloaded a movie from a free file-sharing service; and just 2% had paid for a digital video download from the Web.

More than half (52%) reported visiting a website like YouTube to watch streaming video.

"A growing number of Americans are going to YouTube and other sites for streaming video, but when it comes to paying for video content, they're still focused on DVDs," said NPD analyst Russ Crupnick.

"Though the near-term talk of a digital revolution is probably overblown, as we've seen previously in the music industry, new content delivery sources can quickly take root among consumers. That's why many home video companies are aggressively pursuing digital strategies, because the inflection point will come -- it's just not coming tomorrow."

 

Related Links:
http://www.npd.com/press/releases/press_080916.html

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