Analysis: The Value of Copying DVDs

Authored by Paul Sweeting on April 6, 2009 - 12:01pm.

The National Consumers League is out with the results of a new study conducted by Opinion Research showing that 90% of consumers believe they should be able to back up their DVDs to a hard drive or copy them to a portable device, and they'd be willing to pay about $61 for a piece of software that helped them back up their collections. Sounds like a good business opportunity for someone like a RealNetworks...oh wait.

Actually, what the survey shows--as if it needed further pointing out--is that the studios are fiddling with "managed-copy" while their DVD business burns. According to the survey, 55% of respondents are buying fewer DVDs today than they did a year ago. More than four in 10 (41%) expect to be buying fewer still a year from now.

Yet the same 41% said the ability to make back up copies would make their collections more valuable, and 40% said it might cause them to buy more DVDs. That sentiment ran particularly high among households with kids, obviously because it's harder for the little angels to get peanut butter on a hard drive than on a DVD. Households with kids have purchased an average of nearly 3 DVDs to replace those lost or damaged.

Despite studio fears that back-up copying will lead to massive Internet piracy, moreover, only 18% of respondents reported ever having copied a DVD to a hard drive. Another 5% said they had tried but were unable to. The vast majority of respondents (79%) said they have no real interest in copying DVDs.

So, what you have is a relatively small minority of DVD buyers, with specific copying needs (backing up kidvids, transferring to iPods), who are likely to see greater value in the DVDs they buy if they could make those copies and would therefore be inclined to buy more of them.

And what have the studios come up with to deliver that value to their customers? Litigation against Kaleidescape Systems and RealDVD for providing tools that allow people to back up their DVD collections. The managed-copy negotiations, meanwhile, drag on toward the four-year mark with nothing yet to show for the effort. 

Other interesting findings from the study:

  • While DVD purchasing may be down, DVD rentals are holding their own. 19% of respondents said they are renting more DVDs today than a year ago, compared to only 9% who said they are buying more, and 8% show said they are going out to the movies more. Only 34% said they are renting less, compared to 55% and 50%, respectively, who said they buying less and going out less.
  • A surprising 18% said they own a Blu-ray Disc player, yet only 16% reported regularly using it. That could mean , a) there aren't nearly enough Blu-ray titles available for people to watch, or b) most of those Blu-ray players are really PlayStation 3 consoles, which only some people in the household use at all.
  • More than three-in-10 (31%) regularly use an in-car DVD player, which would suggest a high demand for portable content, were the studios ever able to deliver it.
  • DVDs that come with pre-ripped "Digital Copies" for transferring to a hard drive or portable are seen as a half-measure. More than half of respondents (51%) said they are "bothered" that they can't save their DVDs to a hard drive without cracking the encryption or buying an "expanded version" with Digital Copy.
The full report is available here.

Paul Sweeting

 

Paul Sweeting is the Editor of Content Agenda, a business-to-business brand dedicated to the nexus of content, technology and business. This piece was originally published on Paul's blog "Media Wonk" on Content Agenda and is posted on DMW with the author's permission.

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Comments

Smart Consumers Have Been Copying their DVDs for Years!

Finally someone is starting to give the consumer a voice. Of course we want to make backup copies of DVDs that we own! Every parent in America has had to buy a second or third copy of Disney and other animated DVDs because kids watch them over and over at home, on trips, etc. etc. We can and should be able to make backup "working" copies of our DVD movies, and keep the original safely stored away. No matter what Hollywood does, consumer will exercise their fair use rights. Thankfully, there are dozens of consumer dvd copying programs that enable us to one-click copy ANY commercial DVD movie. The best dvd copy software programs are listed, ranked and compared side-by-side at: www.dvdxcopy.com

you should be allowed to copy

I have more than 200 DVDs. I want to back these up on a hard drive but i find it amazing that its not possible when it was always possible to do that with CDs. If they allow you to do that, then people will still buy DVDs because very soon content is going to be more widely available on-line. Most people have already bought there library titles. Thats why DVD sales will go down and rentals will become more popular.

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