DVDs Still Beating Blu-ray, Downloads Among Consumers
NPD study finds digital downloads/streaming only 3 percent of consumer spending.
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May 12, 2009 by Jason Unger

DVDs continue to be the dominant entertainment media among consumers, with 63 percent of consumer spending going to the format.

That’s according to the NPD Group’s “Entertainment Trends in America” March update, which finds that the average U.S. home spends $25 per month on home video purchases and rentals.

After the 63 percent for DVDs, 18 percent if spent on DVD/Blu-ray rentals, 7 percent on Blu-ray purchases, 9 percent for video-on-demand and only 3 percent for digital downloads and streaming.

(Of course, many streaming sites, like Hulu, do not require a purchase, which may affect these results.)

“Discs are still and by far the dominant way Americans enjoy home video, but there is an increasing appetite for digital options,” says Russ Crupnick, entertainment industry analyst for NPD.

“The good news is that the consumers engaging with digital video today also tend to be heavy consumers of DVDs and Blu-ray Disc, but it remains to be seen just how long physical discs and digital formats can co-exist.”

While they still have a while to go to catch up with physical media, digital options have increased. The number of Internet consumers who watched a streamed movie in the past three months increased to 9 percent, up from 5 percent last year.

The number who rented a digital media jumped from 4 percent to 8 percent in the same time period, while less than 5 percent watch a movie downloaded from a videogame console.

“While many in the home video industry worry that digital consumers might walk away from packaged media, that hasn’t happened yet,” says Crupnick.

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