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

[FinalEvangelion]

From an unbiased source, the outlook for BD is very positive. It will looks like it will definitely be mainstream. I guess we can see why the FUD has been increasing lately. All the anti-BD people are coming out of their holes when the market is about to tip.

LOTR would definitely be the film that gets alot of people next year to adopt the format.

Sorry, downloads, you will have to wait a while.

[Grubert]

So users of Blu-ray vastly prefer the picture quality, the sound quality and the overall entertainment experience Blu-ray gives them.

As to the often mentioned issue of available content, 37% think the number of movies and TV shows available on Blu-ray is much or a little better; whereas only 16% think the content available is much or a little better on downloads/streaming.

Impression of price is more or less even, with slight advantage for Blu-ray.

There is a separate question for price preference:



At the same price, 61% would prefer the Blu-ray; only 12% would prefer to download.

Even if the download was $5 cheaper, 55% would still prefer the Blu-ray.

[dialog_gvf]

The Big Lie is definitely in full force out there trying to convince people everyone elses' attitude is something different.

The $5 discount, of course, could only possibly apply to ownership purchases. Rentals could be very cheap via download/streaming if the studios wanted to totally destroy the owneship (and rental bricks and mortar) sales, but they can't be $5 less (unless you're paying way too much for rental - I pay $3.25 for seven day Blu-ray rentals)

And ownership comes with it extra costs with respect to storage. And the consumer will ultimately factor in that cost too.

Gary

[dialog_gvf]

Notice who is a member of DEG?

Microsoft
HP
Toshiba

And while VUDU plans to offer higher HD-quality that approaches Blu-ray, this will required three- to four-hour downloads times per movie.

Apple CEO Steve Jobs said during his Octover 2008 quarterly earnings call that Apple TV and other streaming devices will remain "a hobby" through 2009. He stated "I don't think anyone has succeeded at it and actually the experimentation has slowed down. A lot of early companies that were trying things have faded away"

Quick, another dozen articles are needed telling people downloads are coming (tick tick tick) and that people don't want Blu-ray.

As David Carnivale at iSupplu asks: "Do consumer event want or need a physical copy of their movies or TV programs anymore? ..."

As to Carnevale's [sic] question - "Do consumers till want a physical disc?" - the answer is decidedly yes.

[blu2]

Originally Posted by FinalEvangelion

From an unbiased source, the outlook for BD is very positive. .

DEG is not an unbiased source.

They're actively involved in promotions of the format.

(I'm not disagreeing with any of the information they provided, but they are not a neutral party)

[Anthony P]

DEG is not an unbiased source.

I know, with board of directors like

Jodi Sally
Vice President
TOSHIBA AMERICA CONSUMER PRODUCTS


Blair Westlake
Corporate Vice President, Media & Entertainment Group
MICROSOFT

Willem de Zoete
Vice President, Digital Entertainment Services
HEWLETT PACKARD COMPANY


not to mention all the members, are just a bunch of Blu-ray fanboys.

[Anthony P]

Notice who is a member of DEG?

Microsoft
HP
Toshiba

they are not just members, they are part of the BOD

[FinalEvangelion]

If they saw more potential in DD, wouldn't the DEG promote that just as easily?

[Blu Titan]

Originally Posted by Anthony P

they are not just members, they are part of the BOD

Very good points...and a very informational article. As a movie lover and collector, Blu-ray is the only and obvious choice. There are people on the internet that take joy in Trolling. You see them spewing their vomit at every possible moment. However, the progession of Blu-ray as the format of choice is inevitable.

[blu2]

Originally Posted by Anthony P

I know, with board of directors like

Jodi Sally
Vice President
TOSHIBA AMERICA CONSUMER PRODUCTS


Blair Westlake
Corporate Vice President, Media & Entertainment Group
MICROSOFT

Willem de Zoete
Vice President, Digital Entertainment Services
HEWLETT PACKARD COMPANY


not to mention all the members, are just a bunch of Blu-ray fanboys.

You can read all about the DEG role regarding Blu Ray on this very site:

https://www.blu-ray.com/news/?id=1087

The Digital Entertainment Group (DEG) has announced that they will launch consumer education, retail training, and public relations activities with the goal of propelling Blu-ray into a mainstream format. They want to increase awareness of the Blu-ray format, as well as educate about the advantages over DVD. This will help promote a unified voice in support of the high definition format.

Bob Chapek, chairman of the DEG and president of Walt Disney Studios Worldwide Home Entertainment commented, "Given our success in promoting new entertainment formats, the DEG is a logical association to underscore the benefits of Blu-ray Disc to consumers, retail and the media. As the DEG was the unified front for the support of DVD, we will also be leading the promotion of high-definition packaged media."

[dialog_gvf]

Originally Posted by blu2

DEG is not an unbiased source.

They're actively involved in promotions of the format.

(I'm not disagreeing with any of the information they provided, but they are not a neutral party)

They aren't unbiased, you're absolutely right. But, I don't think they are particularly anti-downloads either.

The numbers they provide certainly don't support the parade of "analysts" who have been basically claiming the consumer is eager to abandon the physical for downloads.

Gary

[FinalEvangelion]

Originally Posted by dialog_gvf

They aren't unbiased, you're absolutely right. But, I don't think they are particularly anti-downloads either.

The numbers they provide certainly don't support the parade of "analysts" who have been basically claiming the consumer is eager to abandon the physical for downloads.

Gary

Biased toward the better source of money If DD provided the better income, then they would support that, especially with Tosh and MS on board.

[Midnightsailor]

Only Blu-ray can provide HD audio.

[Anthony P]

You can read all about the DEG role regarding Blu Ray on this very site:

their role is to gather info and promote every media. The issue is not if they are there to convince people to buy/rent movies, obviously that is why it exists and that is why the BOD and the members are a who's who of CEs, studios and tech companies in AV formats.

Like FinalEvangelion they are "Biased toward the better source of money".

Don't forget that the info they gather is not for public consuption but for people in the industry so that they can know what people are interested in.

Someone can be pro something while not against everything else.