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.
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 MonitorTM. “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® the Video Marketplace, part of The Home Technology MonitorTM 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®, 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 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® 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® - the only
available probability selected, nationally representative Internet
panel.