June 07, 2008

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 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, 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.

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. "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?"

To view chart CLICK above on ‘More Images’.

For more information at http://www.knowledgenetworks.com

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