Surprise surprise, most home video spending still on discs
By Richard Lawler 
posted May 13th 2009 3:42PM
posted May 13th 2009 3:42PM
Just in case you needed another reminder that despite some interesting developments, digital isn't quite overtaking disc just yet, as NPD's latest figures indicate 63 percent of consumer spending is still on DVD purchases. Blu-ray purchases snapped up 7 percent, rentals of DVD and Blu-ray discs together were rolled up to take 18 percent of the pie, VOD accounted for 9 percent with 3 percent of the cash left for digital downloads and online streaming. Still, all wasn't lost for internet based options, while out of the more than 11,000 surveyed only 9 percent of those with internet at home reported watching a movie via streaming that's up 4 points from last year, same for rented downloads, up to 8 percent from 4 in the previous year. The much hyped video game console marketplaces? Less than 5 percent of consumers have checked them out yet (We'll wait for one to launch on Wii.) Interestingly, but not all that surprising given the crossover, the same people into digital video are also heavy consumers of Blu-ray and DVD, but the overall indication is that packaged media still has some time in the spotlight before consumers find a reason to switch.[Via Electronista]
i don't see media based movies leaving anytime soon,way too many people still use that and will probably use it till the end of time,i like to have a hard copy of my movies not something thats saved on a hard drive
Well the studios certainly aren't giving consumers a cost-benefit to switch to digital. Most of the time, they're at least as expensive as their media-based counterpart...sometimes more expensive!
I'm certainly not paying the ludicrous prices Time Warner charges for VOD services. And as much as I love my TiVO HD, Netflix streaming through it is pretty drab most of the time. It's a rare time (mostly around 5-6 a.m.) when it actually streams at full bandwidth and gives me a 16:9 picture. Most of the time it's much smaller and looks like it's been through a mis-calibrated anamorphic filter or something. The proportion is off, and resolution is worse than VHS.
No competition for a nice Blu-ray dics at all. And I doubt, with all the ISPs pushing for ludicrously small bandwidth caps (and no, TW, I don't need to be "edumicated" about it, I know exactly what you're up to - monopolistic anti-competitive behavior), or considering caps with few exceptions, discs are the future. And if the state of broadband and cellular service is any indicator, there ain't anything going to happen any time soon to change it.
It's time to set Blu-ray on stun and chew bubblegum. And I'm all out of bubblegum.
Most people like to had physical copy of the movie.
3 Main factor.
You could find them onsales after been release for some time.
You could show off your collection much easily.
You could sell them might still be a little but better than digital that can't resell.
I just like owning my content....I have Well over 1,200 DVDs & Blu-ray movies....the ONLY way I will consider going to a digital download only type thing is if I can get a 1PB(Petabyte) server AND I get all the same content as a BD movie that I can download to said server...oh and the Movies have to cost LESS than the physical Media. I hate that Some digitally distributed movies cost just as much or MORE than a DVD version of the movie
Well seems that VOD with digital downloads makes more money then Blu-ray.. surprise surprise.. I'm guess by next year they'll out do it and this is really not indicative of the real situation because people using Netflix and Hulu are not generating revenue but the money is made either through subscriptions or advertising for the studios and networks.
Either way, this is not so hot for blu-ray.. most people still buy DVDs because they are the cheapest. It seems that rise of VOD and Digital downloads is increasing at a faster pace then expected.
But how much of that VOD and downloads number is in high-def???
I'd bet my left nut that if you compare high def VOD+ high def downloads to BLuRay then you'll eat your words.
Nice try at spin Bozster. Dont know where you got that from reading the original article?? BTW... How many of those digital downloads are HiDef?? Answer: not even on the radar screen :)
Like it or not, physical media is here to stay.
Who cares.. the biggest number is DVD.. so obviously people don't give a crap about Blu-ray at 7%. The more people go directly from DVD to VOD/Digital Downloads the faster online distribution gets mainstream. HD will come as well but the fact that VOD and digital downloads made more money than Blu-ray obviously shows that people are less interested in new optical media but want more convenience.
DVD will be with us for a long time, but it's by these numbers that we can see that non-optical media is growing much better then another optical format. This means in the next couple of years the numbers will be much higher for VOD/Digital Downloads then initially estimated when it's surpassing Blu-ray now.
In other news.. every major provider is now basically offering 1080p streaming:
"CBS said today it will begin stream a sampling of CSI, NCIS, How I Met Your Mother episodes in not just HD, but 1080p HD, equalling quality delivered by Blu-ray. Of course, you'll have to watch it on the computer, so maybe not quite.
Hulu and others who have also added HD streams and downloads in the last year, though Hulu's and most others are only 720p HD. CBS allows viewers to choose between HQ, HD and 1080p for its high definition streams. The 1080p streams are also available on CBS-owned streaming site TV.com."
http://www.videobusiness.com/blog/1730000173/post/1220044522.html
Bozster: Your delusions are pathetic and your attempt at spin is weak.
People aren't going from DVD to downloads. They're switching from DVD to BluRay.
I know you'd like that squideater, but unfortunately that's not what's happening.
Sigh, your attempts to spin the truth is really getting pathetic Bozster.
No wonder Apple doesn't want Blu-ray.
Apple files patent for download kiosks:
MAY 11 | DIGITAL: Just as the digital music and movie kiosk business appears poised to launch, it looks like startup companies in the space could face some heavyweight competition from Apple.
Apple filed a patent in 2007 for a digital entertainment kiosk capable of delivering movies and music to portable devices over a wireless connection. The kiosks would be placed in areas where wi-fi isn’t available, such as on airplanes and in airports, according to the filing.
AppleInsider dug up the patent last week.
In the filing, Apple says it will deliver movies over a “virtual physical connection” between portable devices, mobile phones, etc. and the kiosk.
Apple says it chose to use a wireless connection rather than requiring that a device be hooked up to it because “the continuous engagement and disengagement of the media device connector may result in excessive wear and failure of the connector.”
Apple says the kiosks could be placed anywhere and “address deficiencies” in other systems and methods for delivering media.
“The media distribution system advantageously enables the distribution of media content to a media device via a [kiosk] residing in virtually any location such as an airport, hotel, stadium, train station, shopping mall, stores, planes, ships, public transportation vehicles and the like,” according to the filing.
http://www.videobusiness.com/article/CA6657639.html
Another weak-ass attempt from Bozster.
The application for patent is dated 2007 but where are these kiosks that you talk about????
That's how it works. You obviously don't have a clue how things work. That's why Apple didn't want to use Blu-ray because they are going to do kiosk approach. With iPods, iPhones and other stuff I'm pretty sure they'll help this digital distribution go mainstream.
Patents are not given in 2 weeks. It takes a while for approval. In the meantime, they are not the only ones who are planning to do this.
Next 2 years, it will become clear even to you what's going to happen. Blu-ray just temporary thing, nothing more. So enjoy it while it lasts.
Hard to believe that Blu Ray is still only 7% man at this pace Blu Ray will over take DVDs by the turn of the century.
Last year BluRay was less than 1 percent.
Now it's 7 percent.
All that growth during recession,
So what's your point????
Where'd you get that info squideater? end of 2008 it was 5%.. now it's 7%.... the growth is unbelievable :)
And this is revenue btw..
This guy's rant is unbeliveable. Guess he must really be pissed off by HD-DVD loosing.
It's hilarious how many people still can't come to terms with facts and reality.
Even Sony is actively pushing digital downloads on all fronts.
Instead of ranting and bitching about something that's reality how about you argue with actual facts and backups instead of wishful thinking.
People might take you seriously.
I have no qualms with Blu-ray but the growth is really bad and those people who want to jump away from DVD will most likely jump to Netflix or other services and use VOD as it is cheaper and more convenient.
Imagine where it will be in 5 years. It's the future.
I have no problem with facts. Facts are that BD is doing quite well. Facts are that little facts are coming from you, only a endless spin and bitching about BD.
I have to admit, Ive slowed on my blu ray purchases to only those movies I really want because there are already at least 2 solid competitors on the horizon for digital media distribution. IMO its digital downloads and one of the new holographic discs/cards/drives.
I bought Taken on Tuesday, the previous BD I bought was... wow I honestly cannot think of what the last one was.
I think it's too early to know if Blu-Ray will really take over DVD sales. The fact is sales of the actual stand alone Blu-Ray in Q1 2009 are double those of Q1 2008 but as said the discs are still around 7%, I guess we wont see how it goes until later in the year.
I've been buying alot of Blu-Ray's but in the past few months I've been buying alot of DVD's casue some stores (the Best Buy in Montreal and in Ottawa) are selling off DVD's as low as 3.99, even some relatively new movies. When I asked why they said they are making room for more Blu-Ray.... we shall see.
Here I'll help you. After 3 years and penetration that is now falling behind and a ton of other content providers and sources, Blu-ray will never replace DVD. by 2014 by estimates and they are pretty optimistic for Blu-ray, best case scenario is that digital downloads and other sources will share the marketshare with Blu-ray and it will be pretty much 50/50 as far as I remember.
The days of optical are ending. Just as retailers are phasing out CDs, they'll phase out optical. Blu-ray is just here in the meantime, until the real capacity of broadband and digital delivery is reached. Which will be in the next 5-6 of years at the pace they are doing now.
Blu-ray might be around by then, but it's definitely replacing DVD.. that's all going DL and kiosk approach for those who don't have fast enough connection.
If you're going to talk about DL vs. Blu-Ray, make sure you're talking about movies purchased vs. streamed one time (ie. RENTAL).
Now, the trend seems to be that more folks want to RENT instead of BUYING movies. However, when folks DO buy, do they buy a DL file, or a disc? Do they buy a 1080P DL of a movie or just pick up a BD?
Keep your comparisons within context, and don't spin BS to favor an opinion about a format. FFS it seems like BD killed kittens and now there are still people out to celebrate it's death. Seriously, get over it. BD is still the best option for PQ, audio and convenience.
Seems like we got off track from the "Bandwidth costs will likely squeeze off DL market"
to the trolling of someone.
Between the rental/free one time viewing and the purchase and owning of Videos there isn't much of a contest, Disc Media is not going away and with the Bandwidth caps seeming very likely, the growing and more bandwidth intensive HD DL market isn't likely to get very far.
Someone better hope BD prices don't drop much more because if it's buy a disc or 3 a month or rent a few videos a month and pay a high bandwidth fee, the choice for many( who understand the savings in having something you can resell) will be minimal at best.(people also seem to discount the Hardware costs of DLs.)
Those who don't want to spend any money can also go to the library and just check out a video, even BDs in many cases.
Keep in mind, those bandwidth caps will be on the free TV/movie viewing you do online as well.
Some of us don't count someone watching Fringe or House on Hulu as competition to Disc sales, though it does seem to be counted by the "VOD will take over" crowd.
The day you can buy a Sub to rewatch any House ep on demand and any extras on the discs will be the day we think these choices are actually in competition.
Bandwidth caps are in the process of being outlawed. So that's not gonna last long either way.
After Time Warner fiasco you can bet your behind that the vote against bandwith caps will go smooth in senate.
Optical is dead essentially as a future format. As I mentioned more and more companies will be switching to kiosks at retail locations, where you come in and copy whatever you want on your machines, or flash drives or SD cards or whatever.
While DVD will remain on the market for a long while because it's going to be dirt cheap..it will be the same as with CDs. Blu-ray is somewhere in between and it's neither going to inherit DVD crown, nor it will be able to offer future increases in size and convenience of DL.
I've stopped buying optical discs completely for anything other then an ocassional movie I want to really have.
If you want to argue problems with DL, there's other things, but none that is mentioned is really a problem. The real problem of owning content with digital downloads is DRM. If they can make a unified DRM that problem solved. But it really begs the question.. Who wants to own discs anymore. If everything DL goes mainstream and you have subscription models, why in the hell would you want to own a bunch of discs when you can go and watch movie at any time.
I think people are already realizing this.. that's why there's a decline in sales and it just keeps dropping.
Bozster, you don't back up anything you're saying at all.
-andwidth caps are in the process of being outlawed? Oh? What legislation is there? Who is supporting it? Does the FCC back it? With the CableCos lobbying, does the proposed measure (if there is one) even have a chance? How long before it even makes it into debate in the House or Senate? Or will the FCC unilaterally rule?
You make this sound like a done-deal, but ANY proposed regulation on caps are completely in their infancy at this point -- if they exist at all.
Kiosks are nice. They may take off. But, again, you make it sound like a done-deal. And you completely ignore that keeping ANY content requires storage. And a way to arrange it. And a way to play it back. Pulling a disk off a shelf is far more user friendly than digging through tons of files, even when you have something like iTunes for organization. Trust me, I do both.
And as pointed out many times, you lump all forms of digital download and VOD into one pie. You assume it's all HD sales, which is totally incorrect. VOD is 100% rental. Digital Downloads are mostly rental. And with both, the amount of HD available pales in comparison the SD content.
Finally... Decline in sales? Blu-ray sales have MORE THAN DOUBLED since this time last year. And even though BDs have been around for about 3 years, the format war ended 1 year ago, and what happened? Sales have doubled. Or did I already say that?
-Pie
Bozster is just spewing out groundless crap and spin. I wonder if he is that same guy "Truth Teller" that trolled around a while and filled the forums with his "HD-DVD will soon kill off BD" BS.
It's pretty clear that Bozster is someone that can not get over that "his horse" lost the race and now have to take his frustration out all over the place.
Give it up Eating Pie. There is no point trying to be fair or discuss anything with Bozster. He is just here to spin stuff so it appears to support his agenda. Doesn't matter what the post is about, somehow he will find a way to turn it into yet another diatribe about how blu-ray is a failure.
His posts make hacks like Ann Coulter and Michael Moore look like epitomes of journalistic credibility and integrity.
The only thing harder than moving discs around is moving data on hard disks around. I just don't see viewers embracing a model where they are constantly having to backup their content and copy it to ever-larger hard drives. It's easy to buy a new shelf if you need more space. Moving the content means a couple of arm and hand maneuvers and you're done. Copying content between drives and ensuring it's all backed up is NOT user-friendly enough and it never will be. Then, if you want to use it somewhere else it's a copy either to an external drive or another drive via the network.
Oh, and it may not work there due to DRM. We've already seen this with digital music and I don't think consumers will put up with it for video content.
Keep those $20 DVD's coming, I'm not going to pay the outrageous price of high-speed internet for digital downloads.