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NPD Report: Only 0.6% of Your Movie Budget Goes To Online Downloads 'Consumers Prefer Discs'

DVDTown.com writes, new NPD Group survey shows that people still prefer disc instead of online rentals and downloads.

Only 0.6% of U.S. consumers' monthly film spending goes to downloading movies for either purchase or rental. 81%, comes from buying and renting movie and TV DVDs. 18% is spend in the movie theater.

When the asked how consumers watched a full-length movie in the past three months, 67% of respondents said they watched the film on a DVD they already owned.

The survey also showed that upconverting standard-definition players are more popular than high-definition set-tops. Year-to-date through July, 29% of set-tops units sold were upconverters, and 11% were high-def disc players, according to NPD. About 60% were straight standard DVD players.

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Winter47th3348d ago

Is that even worth bothering.

Immaculate3348d ago

A movie costs between $10-$30 to buy, it costs between $1-$5 to rent a movie. Are you really suprised by the figures in this story?

pwnsause3348d ago

"There is an 800lb gorilla in the room that you are ignoring"

that 800lb gorilla is actually 800lbs of fiber optic cables that are not yet installed in the USA. thus giving me speeds of up to 8mbps, not enough to give me blu-ray quality movies with 7.1 surround sound. people are not dumb, they know what has better quality. In fact Time Warner Cable got in trouble the other day because people were noticing that HD channels dont really look like HD.

hitthegspot3348d ago

Where do you buy your movies? I can get a DVD at Wal-mart for $5. Once I buy the DVD, I then own it and I can rip it and put it on my PDA, PSP, or play it in my Laptop via HD or DVD-Drive as well as watch it in my home theater. Why would I want to pay for a download that is going to have DRM technology and prevent me from watching something that I spend my hard earned after tax money on, the way I want to see it? I was in Best Buy the other day and I was looking for a MAC that had a BlueRay drive. The sales rep said "why would you want a MAC with dead end technology?". I ripped him a new one. Unbelievable. I own over 3,000 original DVDs. I own them because I have a passion for movies. I love them, and dammit I want to watch them any freaken way I please. Download is not the answer. Where the hell are you going to store your HD downloaded movie that you now own? Are you going to build a raid protected storage array? I know I have over 7TB in my house. How much storage do you have? Not to mention the cost factor. You can buy 100 DVDs for $500, or 2 1TB HDs for $260 (need raid should mirror it) + $20 per movie to put on it and whoopee you now have 12 movies, that live in one spot in your house. Not for me...

mikeslemonade3348d ago

This shows that Blu-ray is here to stay. And digital distribution for movies isn't even near big enough to take off.

AAACE53348d ago

I still stand by my previous statement, that people want to have a physical copy of what they purchased! But to agree witl some others... Price is important as well!

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eagle213348d ago

0.6% is chump change for the movie industry. :)

meepmoopmeep3348d ago

bu... bu... but... digital distribution is the future!

wray773348d ago

it is the future, which is why it isn't right now :)

deeznuts3348d ago

ISPs, "NO IT'S NOT! Unless you PAY US!"

meepmoopmeep3348d ago

lol, it will be the "optional" future.
not the "replacement of physical media" future.

:P

Megatron083348d ago (Edited 3348d ago )

That number will shoot up when the 360 release the new bashboard with netflix. However it might drop right back off depending on how good it is.

@meep I halfway agree with you. I think most people will always want to own a disc but I think DD could easily become the standard for rentals. Its just much easier to pick out a movie online and download it is to get in a car go to a video store and then take it back when your down. People are cheap and lazy so anything that is cheap and quick and easy their do.

meepmoopmeep3348d ago (Edited 3348d ago )

yeah, i agree with you.
but like i said, it will be an "option" not a "replacement"

i know i would prefer to dl it (rent) if it was cheaper, but that depends on how fast the dl is.
some people might not have fast connections and will get fed up with waiting for a dl to finish.

chasuk083348d ago

Do you honestly think the whole state of digital downloads rely on xbox live ??

LikAChicken3348d ago

You really think that number will shoot-up when 360 releases its updated interface? Uhh, try no. I'll be surprised if that number increases to 0.7% due to the 360. Anyway this statistic goes to show you people aren't ready for DD as of now. And I agree, in the future it will be regarded as an alternative, I really do believe physical media will be in for A LONG time. DD may gain popularity but thinking economically, uses only DD as the ONLY way of distribution doesn't make sense right now. Maybe in the future when EVERYONE has the net and high speed connections. And I mean a very LARGE majority. All in all, DD will not be a heavily used distribution option for a while.

~I am a gamer...who likes economics~

Megatron083348d ago

@LikAChicken wow your in some serious fanboy denial. It doesnt have anything to do with the interface really other then that when they will be including netflix rentals through the 360. Even if only 1 million people got it that less then 1/20 on the 360 owners. Its unlimited rental if you figure they watch 1 movie every week thats 4 million a month thats 28 million in 7 months (the length of this survey.) at that rate it pass up blu ray in no time.

Oh and I never said that all of DD depends on the 360. However like the ps3 (with blu ray) the 360 could give it a big boast

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INehalemEXI3348d ago (Edited 3348d ago )

Only 0.6% because people want a physical copy. Alot of the Download services got problems too. Amazon Unbox has always had something going wrong 3 out of 10 times I use it.

Its a waste of space on your HDD when you can just pop a disc in or stream.

eagle213348d ago (Edited 3348d ago )

0.6% oooooohhhhhhh scary, what a threat Microsoft and crew. SARCASM

The only reason I even mentioned MS is because of thier FUD. They don't own any films so their words are bullshi$ to real film companies like Sony (Columbia, MGM, TriStar, and Sony Pictures), Warner Bros., Fox, Disney (Buena Vista), Lionsgate, Paramount, etc.......lol

I wonder if they will see 0.7% by years end....LMAO

cemelc3348d ago

See Blue Ray is here to stay.

There is just no way that were giving up Blueray till 2017, give up this is the new trent.

This is offtopic but: M$ is going to release the next xbox 720 based on downloads alone????Good luck with that one.

Pain3348d ago

DLC man!! its the future !!. . . . ... .. .. ..

Not sure what to say?....mm how about O yee stupid Xbot hi-rez dvd fanbots Suck that?.

InMyOpinion3348d ago

I wonder what the numbers would have looked like if they had included pirate downloads.

Most people I know who download movies do it illegally.

heyheyhey3348d ago

yeah, but this indicates where the profit is being made... and it's not in digital downloads

pilotpistolpete3348d ago (Edited 3348d ago )

My thoughts exactly Jenzo. And digital movies are hard to keep track of since they are extremely easy to copy.

While I'm sure hardcopies still hold a large majority, I think DD is larger than 0.6%.

beavis4play3348d ago

that door swings both ways. many people copy and sell movies on discs.

the point is that most people want movies on disc....not on hdd.

xaviertooth3348d ago

And that is why movie companies (sony, warner, 20th centurt, paramount, etc) will always produce their films on physical media (and on blu ray since the huge amount of data will take weeks or months to download). Putting them primarily on digital form will result in huge losses in revenues because of pirates.

deeznuts3348d ago

The correct term is SWIM (Someone who isn't me!)

:D

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