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Consumers still like DVDs and Blu-ray

Even though it seems interest in digital content has increased over the past few months, research from the NPD Group reveals consumers in the United States are more interested in purchasing DVDs and Blu-ray Discs.

According to the "Entertainment Trends in America" report, 88 percent of consumers prefer DVDs and Blu-ray, with the average consumer spending $25 per month for video entertainment.   Not surprisingly, most of the money -- 63 percent total -- went towards DVD, with just 7 percent spent on the high-definition Blu-ray format.

Around 18 percent went towards DVD and Blu-ray Disc movie rentals through brick and mortar locations and movie rental kiosks.  Around 9% was dedicated towards video on-demand (VOD) services and just 3 percent was dedicated towards online streaming movies and TV episodes.

"While many in the home video industry worry that digital consumers might walk away from packaged media, that hasn't happened yet," NPD entertainment video industry analyst Russ Crupnick said.  "Discs are still and by far the dominant way Americans enjoy home video."

Many of the consumers who watch digital content also purchase DVDs and Blu-ray media, the research also found.  In addition to video sites such as Hulu, streaming content -- including Netflix -- is available through the Microsoft Xbox 360 game console and several standalone Blu-ray players.

As more viewers become aware of digital content and online streaming, it's more likely they'll begin to pay to watch streaming movies from home.  Last year, only five percent of people with internet at home watched streamed movies, but around 9% watched streaming content in 2009, NPD said in its report.

Sony and other Blu-ray supporters hope to see the format one day replace DVDs as the dominant physical format. As prices of players and movies continue to fall, more people are slowly embracing the format.



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Intrastructure not there yet
By Digibit on 5/13/2009 7:45:56 AM , Rating: 5
I can't see it taking off properly until the network infrastructure is in place to stream the same quality audio (Dolby True HD)and video (1900x1080) as a bluray to EVERYONE (I can't get cable). Sure, I wouldn't mind watching some TV episodes in lesser quality but not for everything.

This would require a huge amount of bandwidth. I don't mind listening to MP3s on a PMP through headphones but I want the maximum quality possible for my movies through my HT setup.

So network providers, where are our 100Mb connections???




RE: Intrastructure not there yet
By AnnihilatorX on 5/13/09, Rating: -1
RE: Intrastructure not there yet
By Digibit on 5/13/2009 8:10:17 AM , Rating: 3
I was commenting on the streaming side of the article but if you want to talk about downloads...

If you have a 3Mb connection (like the average ADSL user in the UK) this would take more than 9 hours. No thanks. I can drive to the shop and buy it quicker than that not to mention the limits we have on downloads over here (I have a 30Gb cap per month).

In addition, where am I going to store all these files? I currently have about 550 DVDs and 50 or so blurays so that is a few TB - no matter how cheap HDD space is. What about backing it up? Or a disk failing? I have to wait another 9 hours before I can watch the movie I want to?

Until they can stream this stuff over the internet it isn't going to catch on and that day is a long time off. Don't get me wrong, I think it will happen eventually but not for a good few years yet. The technology just isn't there yet.


RE: Intrastructure not there yet
By mmntech on 5/13/2009 9:50:37 AM , Rating: 4
Not to mention the download caps a lot of ISPs are imposing. Average HD movie is about 20gb a piece. Just one would blow a lot of peoples' monthly allowance. North America's internet is still in the dark ages and digital downloads won't take over until we get something similar to what they have in Japan and South Korea.


By SavagePotato on 5/13/2009 11:35:21 AM , Rating: 2
Even if the infrastructure catches up to the point where it is practical to download blu ray size disks in minutes, new technology is around the corner in storage too.

Holographic disks with terabytes of storage will be a reality before north america's bandwidth catches up to even blu ray sized content in my opinion.


RE: Intrastructure not there yet
By FITCamaro on 5/13/2009 8:31:02 AM , Rating: 5
Maybe you would, but I'd rather just drive 5 minutes to Blockbuster, get the movie, and come back and watch it. Or better yet, get it in the mail from Netflix.


RE: Intrastructure not there yet
By Yawgm0th on 5/14/2009 3:39:01 AM , Rating: 3
At 100mbps, my downloaded copy will be done downloading and playing on my HTPC or PS3 while you're on your way back. If I'm streaming on my current connection, it will be playing before you've started the car. In either case, I didn't have to get off my ass once.

On second thought, maybe digital content is going to make the country's obesity problem worse.


RE: Intrastructure not there yet
By deeznuts on 5/15/2009 2:03:57 AM , Rating: 2
You can download 20GB in 10 minutes? Your 100Mbps is about what, 12.5MBps? that would take about 26 minutes sure, if the other side is uploading it that fast.

I don't care of something is 1080p if the bitrate is trash. Current TVs are already pushing bluray resolution and quality, DVDs actually look disappointing on current top end TVs, even with the best upscalers.


RE: Intrastructure not there yet
By deeznuts on 5/15/2009 2:04:37 AM , Rating: 2
Oh I forgot to mention, after a few movies each month I'm sure you're ISP will have something to say about it too.


RE: Intrastructure not there yet
By Hiawa23 on 5/13/2009 9:35:22 AM , Rating: 3
Although I have a PS3, I can't say that I am into downloads at all, so I am fine with the physical copies of my movies, preferably DVDs. I have Netflix, so it's perfect, I don't buy any store copy movies since I have DVD burner, but I definitely prefer having physical copies of my movies.


RE: Intrastructure not there yet
By StevoLincolnite on 5/13/2009 8:04:49 AM , Rating: 2
My 100mbps is coming thanks to the Australian National Broadband Network. :)


RE: Intrastructure not there yet
By MadMan007 on 5/13/2009 8:58:25 AM , Rating: 3
100mbps of heavily censored bandwidth..awesome.


RE: Intrastructure not there yet
By rburnham on 5/13/2009 10:07:41 AM , Rating: 2
How does one censor bandwidth?


RE: Intrastructure not there yet
By Mr Perfect on 5/13/2009 1:02:47 PM , Rating: 2
The AU government started(or is starting) a national filter. They block any site they don't like.


RE: Intrastructure not there yet
By croc on 5/13/2009 5:40:45 PM , Rating: 2
Hasn't happened yet, mate... I think that Mr. Conroe bit off a bit much with his proposed program. Very few ISP's are signing up for the trials, and with good reason. Layer 7 packet inspection is not cheap, and introduces an extra layer of latency.

Give me an opt-in program, but any program that I cannot even opt out of, well, I'm not dumber that a 6th form student, am I?


RE: Intrastructure not there yet
By Yawgm0th on 5/14/2009 3:22:28 AM , Rating: 3
I think OP's point was that content is censored. Censoring bandwidth is a nonsensical concept.


RE: Intrastructure not there yet
By ralith on 5/13/2009 8:30:07 AM , Rating: 2
Don't forget it needs to be reasonably priced. I'm not going to spend more than $50 a month for high speed internet I don't care how fast it is that is my limit.


RE: Intrastructure not there yet
By Yawgm0th on 5/14/2009 3:17:26 AM , Rating: 2
quote:
So network providers, where are our 100Mb connections???


You can download a 10GiB 1080p movie in about 75 minutes on a 20mbps connection. For many of us the bandwidth is there. We don't need to wait for the 100mbps connections that we should have anyway (for other uses ;) ).

But how many people own computers that can actually play 1080p content reasonably? I'm sure more than half the posters on this site do, but we represent a very small part of the market. On an out-of-the-box big-OEM PC, unless the video card does hardware HD decoding, 1080p is pretty much out of the question.

On the other hand, 720p is totally playable on most modern computers, and with most 720p movies under 3GB, an 8mbps connection will do. I'm surprised we don't see more 720p streaming or DLC. I don't see why we should have to wait for full 1080p to see such services really take off.


Obviously....
By Aloonatic on 5/13/2009 7:26:56 AM , Rating: 2
.... People like to have something tangible for their hard earned $$$/£££/€€€....

It doesn't stop people moaning that they are too expensive and wanting their music/film etc to be cheaper, the same price as downloaded/streamed content, people want what they want for as little as possible, and have trouble seeing what makes something possible for a certain price.




RE: Obviously....
By AnnihilatorX on 5/13/2009 7:47:24 AM , Rating: 2
Obviously not for streamed content, because you don't get to keep it. But I don't see your logic if the content is delivered via download without DRM.


RE: Obviously....
By Aloonatic on 5/13/2009 8:29:32 AM , Rating: 2
Can you take your downloaded DRM and put it on a shelf? Is it a physical, hangable thing that you can hold in your hands? Only if you burn it onto a DVD or BD.


RE: Obviously....
By Yawgm0th on 5/14/2009 3:24:36 AM , Rating: 2
Hard disks and flash memory are just as tangible as optical media.

Once you take out the DRM, the medium doesn't matter.


RE: Obviously....
By FITCamaro on 5/13/2009 8:31:51 AM , Rating: 2
Exactly. Hard drives can crash far more easily than discs wear out. I want to have something I can touch.


RE: Obviously....
By bgm063 on 5/13/2009 9:20:05 AM , Rating: 3
I'm with you, bro. There's nothing like having a disc to show for it, and seeing how unpredictable hard drive crashes can be, I surely don't mind buying a DVD or Bluray disc.

Plus, I see digital downloads bumping heads with ISP's in regards to internet usages in the long run. I can't imagine ISP's not wanting to charge more $$ if digital downloads go mainstream.


RE: Obviously....
By Motoman on 5/13/2009 12:33:46 PM , Rating: 2
Yup. While there are very few movies available that I have any interest in seeing, I don't have the slightest interest in paying for downloaded/streamed content. If you want my dollars, you give me the physical media. Or you don't get my dollars. End of story.


RE: Obviously....
By Yawgm0th on 5/14/2009 3:28:59 AM , Rating: 2
quote:
Exactly. Hard drives can crash far more easily than discs wear out.
That's quite far from the truth. Optical media is prone to damage from scratches from use. Hard drives typically can sustain much, much more use. Optical media is also much more prone to degradation over time.

quote:
I want to have something I can touch.

One can touch a hard drive about as easily as a disc. But the hard drive holds much more data and you didn't leave a damaging scratch when you touched it.

Also... eww.


RE: Obviously....
By killerroach on 5/14/2009 9:13:45 AM , Rating: 2
That being said, you almost have to try to scratch Blu-Ray media. I've developed a decent-sized collection (between movies and PS3 games), and the only ones that really show much of any wear are the games I've put 200+ hours into.

The point is made, though... even improved scratch protection only goes so far against the typical hard drive's reliability record.


RE: Obviously....
By Bateluer on 5/13/2009 9:30:56 AM , Rating: 2
I agree, most people want something tangible for their money. Also, most digital content comes with so many strings attached as to render it a short term rental.

Even if the content was DRM free, was full 1080p quality, you'd still have to address the lack of physical media. For the tech savvy, this wouldn't be a problem and the content would be burned to various media. But for the average user, they'd be completely lost and then file a class action lawsuit against the studio when their hard drive crashes and their movie collection goes up in smoke before they didn't back it up.


RE: Obviously....
By Alexstarfire on 5/13/2009 9:58:50 AM , Rating: 2
Or they could have a distribution system like Steam so that in the event of a crash all your sh!t isn't lost. But I guess we can't all think of bright ideas.


The issue is quality...
By Quijonsith on 5/13/2009 8:22:19 AM , Rating: 2
I've tried video on demand from suddenlink cable. The non-HD video on demand look like vhs quality video to me, except that the square artifacts of digital compression annoy me alot more than any odd-balls in well-taken-care-of vhs tapes. The HD video on demand is better, but to my eyes still doesn't look as good as DVD.

Combine all this with what suddenlink charges for VOD (IIRC $3.99 for non HD, $6.99 for HD) for a limited number of views and all it saves me is a trip down the street to rent a DVD for maybe $1 more. I'd rather use NetFlix and get DVDs in the mail. The only time I use VOD is if I think I'll only want to see a movie once, such as Twilight.

As far as digital downloads for keeps go, same problem alot of the time to my eyes. Quality. I can't stand the artifacting in "less-than-perfect" codecs, and I don't want to tie up my computer for hours on end to download a movie, nor pay more for internet to get it faster. Much less having that movie tied to my computer, which means getting a portable harddrive to carry to friends houses (if they have the right codec), or carrying around a laptop. No thanks.

DVDs give me something tangible I can keep and carry, and maybe I'm one of the few people left who actually like getting cases with artwork and inserts. It's all the same reason I buy CDs instead of downloading MP3s. Quality and tangibility. (Though with CDs it's also so I can encode my own music the way I want).

I think consumers will be hard pressed to fully give up physical media anytime soon.




RE: The issue is quality...
By Belard on 5/13/2009 9:24:44 AM , Rating: 2
Also, you can transport your DVD/BRD to anywhere you need to go. In your car, across the county, out on a boat, etc.

I finally tried HULU... kinda cool. Okay. I'll use it to watch shows I've missed. Wow, it has 2 water marks now, and of course its not on my TV.

Also, downloaded or VOD movies are just the movies. No extras and such like you get on most DVDs and BRDs.

Lets compare Blade Runner movie.

$16 = 2 disc DVD set (I actually bought the $50 collectors)
$ 3 = 24 rental (2.5gb DL / SD)
$15 = Buy the DRM download to your computer. 2.5~2.6 SD.
$25 = Blue Ray 1080p.

So wow, spend $15 for a locked movie that you may or may not be able to take with you.

Now lets have storage fun.
A 1TB drive (2009) is about $100.00. So the move is now $17.50.... what if you have a lot of movies and your HD dies... all your movies, gone! Wait, buy a 2nd drive for a backup... Now you're up to $20.00 for your download!

What if your PC dies / you upgrade.... your DRM? ARGH!!!

I am using an HPC to record TV shows, its so much better than VHS... its fine. If I really like something and want the quality, I BUY THE DISCS!

$17~20 for an SD, PC locked non-portable video file WITH NO EXTRAS (Deleted / making of) or $15 for an SD DVD box set or $25 for 1080 blu-ray.... hmmmm.


RE: The issue is quality...
By Golgatha on 5/13/2009 9:39:30 AM , Rating: 2
While I agree with all your points, I also like to think of it in terms of overall value.

DRMed download - Can't transcode, watch anywhere, and resale value is $0.

DVD or Blu-ray - Can play it anywhere, can transcode data to several formats, and resale value is dictated by the market for that product. Also, the original purchase price is determined by brick and mortar or Online stores competing for your dollars.


RE: The issue is quality...
By Pabel on 5/15/2009 2:45:00 PM , Rating: 2
VOD channel quality should be same as other "linear" channels, SD and HD. If not, there may be another issue. I'm with Suddenlink. If you want to reach out, we can investigate. Since I don't check this forum regularly, please contact me at pete-DOT-abel-AT-suddenlink-DOT-com. More on who I am here: http://www.suddenlink.com/about/executives/abel/. Thanks.


The answer is simple, really: practicality
By Fenixgoon on 5/13/2009 11:04:21 AM , Rating: 2
How many people have computers in their living room (an HTPC)?

The computer and TV are generally going to be separate one another. Why would most people download a movie on their computer with a relatively small screen when they'd could watch it on something that's 30-60" in size?

(insert obligatory "that's what she said")




RE: The answer is simple, really: practicality
By Azzr34l on 5/13/2009 12:12:23 PM , Rating: 2
The number of PCs in the living is a rapidly growing segment.

Additionally, think about all the Apple TVs or Roku boxes, Blu-ray players and millions of Xbox360's that are Netflix ready. Netflix also has plans to bolster its streaming service and the quality will improve. We're only on the precipice of streaming service(s) available to consumers - it's going to get much better.

Something many of you are failing to see is that you don't have to download the entire movie before watching it. You only download a small amount, then your player buffers the stream. It takes all of about 30 seconds for a Netflix HD stream to start playing on both my Samsung Blu-ray player and my HTPC. (iTunes works similar to Netflix with its buffer) That's less time than it would take to get up and put a DVD in the player and load, not to mention there's no sitting through 5 movie previews before your movie starts.

Bandwidth caps are the one real danger to movie streaming.


By JediJeb on 5/13/2009 1:33:01 PM , Rating: 2
quote:
Something many of you are failing to see is that you don't have to download the entire movie before watching it. You only download a small amount, then your player buffers the stream. It takes all of about 30 seconds for a Netflix HD stream to start playing on both my Samsung Blu-ray player and my HTPC. (iTunes works similar to Netflix with its buffer) That's less time than it would take to get up and put a DVD in the player and load, not to mention there's no sitting through 5 movie previews before your movie starts


That is ok if you live somewhere you can get a high speed connection. For me I can buffer about 10 seconds of content before I clear the buffer, then have to wait another 20 minutes for the next 10 seconds. Until everyone can get off dialup and onto high speed connections this is going to be a niche market.


Downloads look bad.
By noonie on 5/13/2009 4:29:11 PM , Rating: 2
Sorry but I want my movies on #1 Blu-Ray, or #2 DVD. Downloads, even "HD 1080p" don't look as good as unconverted SD-DVD. Cable or satellite HD on average look as good as up converted SD-DVD and on rare occasions look a little better. I haven’t seen any download, cable or satellite that look even close to Blu-Ray quality. Forget the hype, watch what looks best!




RE: Downloads look bad.
By Yawgm0th on 5/14/2009 3:44:05 AM , Rating: 2
I don't know what you've been downloading, but my downloads look and sound way better than DVD or any HD broadcast TV. A good 1080p download is just as good as Blu-Ray.


RE: Downloads look bad.
By psyph3r on 5/14/2009 6:21:30 AM , Rating: 2
you are downloading crappy content or your computer is questionable. Everything I download looks way better than DVD. I cannot even watch DVDs anymore without groaning. digital h264 bluray files ftw!


I enjoy buying DVDs...
By iFX on 5/13/2009 9:20:19 AM , Rating: 2
I prefer to buy entertainment media in physical form whether that's a movie, an album or a video game. There is just something about having a hard copy that I really like.

I also enjoy getting to support local businesses rather than a large company that I really don't have a relationship with outside of their web site and download client.

If people like to download their media rather than go buy it I don't have a problem with that - I personally prefer the "old fashion" method though.




Digital downloads vs. Bandwidth caps
By qdemn7 on 5/13/2009 9:41:17 AM , Rating: 2
How does Hollywood ever expect consumers to seriously embrace digital downloads? Almost every day goes by with "news report" about ISPs complaining about bandwidth hogs and how much it is going to cost to build the new infrastructure to meet the projected consumer demand, while simultaneously proclaiming bandwidth caps and metered usage are in our future.




The actual choice...
By psonice on 5/13/2009 10:22:59 AM , Rating: 2
DVD: I can pick it up with my weekly shop, or order it only. It's convenient, cheap, and good quality.

Bluray: Not everywhere sells it, and it's expensive. It's no more convenient than DVD, but the quality is better. Given the choice, I'd pick it over DVD, but the difference in quality isn't worth a big amount of extra cash. Maybe 10-20% premium.

Download/streaming: Easy enough to get hold of, but that's where the convenience ends. I have no computer near my TV, and no xbox. It's not all that cheap,and I have the hassle of making a backup, not to mention the fact that it's likely wrapped in DRM. HD downloads aren't going to work out, it'd take forever and kill my monthly download allowance in no time.

Basically, I think DVD will be king, until bluray prices fall a bit more. When players are cheap, and films can be picked up for under $10 perhaps. Downloads/streaming: maybe in 5+ years, when the networks have improved and storing 30gb files aren't such an issue. And they're offering DRM free downloads too.




This is why.
By ummduh on 5/13/2009 4:40:52 PM , Rating: 2
I drop $4 or so on a VOD on Uverse, and I get a 24 hour rental period. That's it! And I can't do anything with it. Obviously can't record it, if I happen to not be able to watch the whole thing I can't extend that for a small fee..

It does happen. We rented a movie on VOD the other night and just couldn't get into it that night. I forgot to go back and watch it better the next night. So it's just gone, unless I pay $4 again. And that isn't going to happen.

If I go rent the movie it's pretty much mine for as long as I need it, for about the same price, and sometimes less.




By lecanard on 5/14/2009 3:40:49 AM , Rating: 2
Even if you don't have a Blu-Ray player yet, don't buy DVDs; you will regret it later when you do have Blu-Ray and have a bunch of blurry (not Blu-Ray) movies. If you already have DVDs from before Blu-Ray came out, that's fine, but every movie that you buy now on DVD that is available on Blu-Ray is a purchase you will regret later. Stick to rentals if you don't have Blu-Ray or HDTV yet; someday you will have them and can then buy the movies on Blu-Ray with the money you didn't waste buying an obsolete format now. I stopped buying DVDs back when HD-DVDs and Blu-Rays were first in stores, and now have a nice Blu-Ray collection bought with money I would have squandered on DVDs had I not been forward-thinking.




I'm just waiting...
By MScrip on 5/14/2009 5:23:44 AM , Rating: 1
I'm just waiting until some service like Netflix has every movie and TV show ever made. You pay your small monthly fee, and you can "rent" streams any time you want to watch something.

I don't need to keep a disc on my shelf in case I want to watch it again... I'll just stream it a 2nd time if I want to.

It's probably a fantasy... with bandwidth caps and all... but I'd pay extra to my cable company if they had every movie and TV show ever made to watch on the DVR box I'm already paying for.

I'm gonna be paying for cable for the rest of my life... so let me stream "Caddyshack" to my box whenever I want to see it.

Digital streaming is clearly the future... and since cable companies are scared shitless of Hulu and Netflix... then the cable companies should offer a service like that themselves.

Of course... they won't... they'd rather charge $3.99 per rental... but I can dream...




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