More DVD Players Entering Homes In Paired Devices
Author: HIVE NEWS
videostoremagazine@hive4media.com
Posted: July 21, 2003

DVD technology is penetrating more than households, it’s also showing up in an increasing number of consumer electronics products and PCs, according to new market research from analyst firm Centris.

For the first five years since console players hit the street in April 1997, the focus has very much been on the installed base of these set-top devices, which according to Centris' most recent (June ) monthly report is 41.7 million households.

This should not be confused with other widely published supply-side industry numbers that reflect unit shipments, a Centris spokesperson warned. The new consumer data shows that 25 percent of the 41.7 million homes own multiple DVD console players.

"As the rate of growth in console sales slows -- sales do continue as the price drops and multi player households increase -- expansion to the installed base is coming from other platforms, which the studios simply cannot ignore," said Jerilyn Kessel, Centris co-founder.

The specific devices are DVD-ROM drives in PCs, DVD-enabled video game players such as Sony Playstation 2 and the Microsoft XBox and the more recent surge of portable (including auto) DVD players. "Growing ownership of these devices expands the DVD console installed base by 45 percent, to what we refer to as the 'DVD-enabled' installed base of 60.3 million households," Kessel said.

Among the findings in the Centris research:

· 16 percent of all households have a DVD console only and no other DVD devices; 7 percent have a DVD-ROM only, 5.4 percent have a DVD-enabled video game system only and 2.5 percent have only a Portable DVD player.

· DVD-ROM-only households really do watch DVDs on their PCs. In fact, about 800,000 rent at least one DVD each month and about 900,000 buy at least one DVD each month.

· The largest pairing of devices is console and ROM at 8.1 percent of all households; followed by console and video game pairings at 5.1 percent. Another Centris analysis posits that DVD console and ROM combo owners are the most active in the software market.

· Sony Playstation 2 owners are three to four times more likely to put a DVD in their game console than are Xbox owners. That’s likely because Playstation 2 consoles are DVD-enabled out of the box, while Xbox owners must buy an extra remote package to play standard DVDs on their game consoles.

Next month, Centris plans to publish a study, A Definitive History of Consumer Adoption of DVD, a 100-page report covering five years of trended installed base and activity data, segment profiles and attitudinal metrics. The report is based on more than 200,000 consumer interviews.