Port Washington, N.Y. – Consumers still largely favor DVD
and Blu-ray for watching movies over all the emerging digital services
combined, according to a report from market research firm NPD Group.

percent of consumers reported watching a DVD or Blu-ray over the past three
months, while 68% watched a movie on a TV or cable network; 49% saw one in a
theater; and 21% used a paid video-on-demand service through their televisions.

Consumers also reported that 78% of their home video budgets went to purchase
or rent DVDs/Blu-rays — including both online and in-store — while 15% was
spent on video subscription services like Netflix.

The remaining 8% was split
between digital video downloads, paid streaming, paid transactional
video-on-demand, and pay-per-view.

"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 NPD analyst Russ Crupnick.

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."


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