Generations X, Y Lead Way as Consumers Experiment With Online, Mobile Video - But Most Dollars Still Flow to DVDs, TV Service

Generations X, Y Lead Way as Consumers Experiment With Online, Mobile Video - But Most Dollars Still Flow to DVDs, TV Service

New Knowledge Networks report on video marketplace shows traditional sources claim four out of five consumer video dollars

MENLO PARK, Calif., July 2 /PRNewswire/ -- As TV and movie studios push to make more of their video content available online, a just-released study from Knowledge Networks reveals that while consumers are indeed turning to new video technologies -- such as online streaming and mobile video -- most of their video-related spending continues to be on conventional sources such as DVD rentals and purchases.

New findings from How People Use(R) the Video Marketplace also show that Generation Y (ages 13 to 29) -- and, to a lesser extent, Generation X (ages 30 to 43) -- is way ahead of Young Boomers (ages 44 to 54) in using emerging video sources, such as mobile and streaming, but their spending on such video sources is not significantly higher.

The research is part of The Home Technology Monitor(TM), the authoritative source of information on consumers' ownership and usage of traditional and emerging media technologies. The study shows that the average person aged 13 to 54 spends roughly $31 per month on video-related content. Of this, about $13 goes to TV service, and another $13 from buying and renting DVDs; meanwhile, spending on emerging video distribution channels accounts for less than $5 combined.

Table 1: Use and Purchase of Emerging and
Traditional Video Options, By Generation

Gen Y Gen X Young
(13-29) (30-43) Boomers
(44-54)
DVD user 98% 98% 88%
Monthly DVD buyer 67 71 51
Monthly DVD renter 67 65 44
Streaming video user 52 37 21
Monthly Streaming video 3 4 3
buyer
Downloaded video user 37 18 11
Monthly Downloaded 2 2 *
video buyer
Cellphone video user 10 2 2
Monthly Cellphone video 1 1 1
buyer

To be read: 98% of all persons age 13-29 report using DVDs; 67% report
buying a DVD at least once a month; and so on.

Spending on emerging categories is dramatically lower than traditional

According to this Knowledge Networks study, monthly video spending breaks down as follows:

-- $13.43 on TV service
-- $7.60 for DVD purchase; $5.14 for DVD rental
-- 76 cents for VHS rental; $1.85 for VHS purchase
-- 61 cents on PPV movies and events
-- 44 cents on VOD
-- 37 cents on streaming video
-- 26 cents on cellphone video
-- 25 cents on downloaded video

"DVDs are the bread and butter of content providers," said David Tice, Vice President and Group Account Director at Knowledge Networks and Director of The Home Technology Monitor(TM). "But the growing availability of video in digital forms is impacting peoples' expectations; we found, for example, that 84% of consumers expect to be able to watch video on the device of their choice. The question is, will consumers be willing to pay for the convenience of access in the digital world? And how can content and service providers encourage repeat use and buying in the new media?"

Methodology

Data on video viewing behaviors was gathered from How People Use(R) the Video Marketplace, part of The Home Technology Monitor(TM) ongoing program tracking ownership and usage of both traditional and emerging media technologies.

Data for this release were collected between March 18 and 28, 2008, via a nationally representative US sample of 765 respondents, ages 13 to 54, using KnowledgePanel(R), the only online consumer panel based on a probability-based sample of the U.S. population that includes both offline and cellphone-only households. With a sample size of n=765, one can say with 95% certainty that the results of a question asked of the total sample are accurate to within +/- 3.54%.

The Home Technology Monitor(TM) is the definitive source of reliable insights into consumers' ownership, use, and response to media-related technologies, from broadband to DVRs to mobile video. The program builds on two decades of research, combining top-quality nationwide surveys of technology ownership with special reports on key devices and services. These special reports are usually based on Knowledge Networks/SRI's exclusive How People Use(R) media methodology, a proven technique for studying the quality of media exposures.

Knowledge Networks specializes in solving complex, high-impact problems, providing extraordinary quality and service to leaders in business, government and academia. We work closely with clients to create healthy consumer-brand connections, effective marketing and advertising, sound public policies, and accurate social science research. We have established respected practices in media, marketing, advertising, and government & academic studies. KN excels in study design, analytics, and custom panel creation; we deliver affordable, statistically valid online research through KnowledgePanel(R) -- the only available probability selected, nationally representative Internet panel.

For more information contact, David Stanton (Vice President, Marketing

Communications) at (908) 497-8040 or dstanton@knowledgenetworks.com.

First Call Analyst:
FCMN Contact:

Source: Knowledge Networks

CONTACT: David Stanton, Vice President, Marketing Communications of
Knowledge Networks, +1-908-497-8040, dstanton@knowledgenetworks.com

Web site:

http://www.knowledgenetworks.com/

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