News

DVDs Account for 81% Of Video Spending

9/19/2008 8:00 PM Eastern

U.S. consumers spend just 0.5% of their entertainment budgets on renting or purchasing TV shows and movies over the Internet, while 81% goes toward buying or renting DVDs, according to research firm NPD Group.

According to NPD’s Entertainment Trends in America report, 41% of the amount consumers pay for movies and video is spent on DVD movie purchases; 11% for purchases of TV programs on DVD; 29% on DVD rentals (including from Netflix); 18% on movie tickets; and 0.5% on paid downloads.

The NPD survey did not include the cost of cable or other pay-TV subscriptions, and excluded video-on-demand purchases. When asked how they watched a full-length movie in the past three months, 67% of respondents said they viewed a DVD they owned; half watched a rented DVD; 18% selected a video-on-demand movie; 8% watched movies on a portable media device; 6% downloaded a movie from a free file-sharing service and watched it on a computer or television; and 2% said they paid for a digital video download from the Internet.

“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,” NPD analyst Russ Crupnick said in announcing the report.

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