DEG white paper: "HDTV owners: the prospects for HD media"

[Grubert]

From The Digital Bits:

You'll recall that on Friday I referenced a white paper with new market research data on HDTV and Blu-ray sales and purchasing habits from the Digital Entertainment Group (DEG) and SmithGeiger. According to its projections, consumers in the U.S. will purchase more than 2.38 million standalone Blu-ray players in 2008, up from 700,000 in 2007. The prediction for 2009 is that some 5.31 million players will be sold. This is in addition to the millions of PlayStation 3s. These sales trends for Blu-ray are being driven by demand from HDTV owners, who (according to the research) believe that the format offers them the best quality and value for delivering high-def content. Anyway, I thought you guys might be interested in seeing the research for yourselves, so the DEG has kindly given me permission to post the 20-page document in its entirety for you. You'll find it here in Adobe PDF format. Enjoy!

The executive summary of the white paper reads:

The Digital Entertainment Group commissioned a global survey of HDTV owners to assess the preferences and predispositions of this ever-growing consumer group, with regard to the entertainment options available to them on their HDTVs. Conducted by the independent market research firm SmithGeiger, the survey offers a snapshot of the inclinations and behaviors of more than 1,100 HDTV owners in the United States and more than 500 HDTV owners each in the United Kingdom and Japan.

Respondents were asked to assess their satisfaction with HDTV and with the HD programming offered. They were also asked to compare the entertainment experience associated with watching HD programming on an HDTV to that provided by other formats and media, including Internet streaming or downloads viewed on a set-top box or PC extender; movies viewed on portable video player; and standard definition programming viewed on a variety of devices. Additionally, they were asked to share their behaviors and describe their preferences with regard to the various forms of HD media, from broadcasting to streaming to Blu-ray Disc.

The results of this study suggest that HDTV has had a remarkable effect on consumers' preferences, expectations and behaviors. Across the three survey markets and virtually all demographic breaks, respondents overwhelmingly express satisfaction with the quality of HD media – including both picture and sound – though not with the variety of HD programming available to them. They also show a clear preference for physical media over digital streaming and downloads and, in particular, for Blu-ray Disc above all other formats. And they express a strong preference for HD media viewed on an HDTV over any other format – including 18- to 24-year-old respondents, who, despite their reputed bias toward Internet video delivered via a computer screen, are among the most committed of respondents to larger-screen HDTVs as a viewing medium.

Finally, their expressed affection for HD media almost universally matches their exposure to HD – that is, the more HD programming they see, the more satisfied they are and the more likely they are to watch it. They are also more willing to pay extra for it and to become evangelists, recommending it to potential buyers.

All the document is very interesting, and a good read.

The appendix contains numerous charts, including:

- Opinions on Blu-ray
- Importance of features in decision to purchase a Blu-ray Disc
- Blu-ray Disc vs streaming/downloading services
- Preferred format based on price
- Reasons for not using a Blu-ray with HDTV
- Likelihood of recommending Blu-ray to potential buyers