July 2, 2018
More than half (51%) of consumers who are active in buying or renting video content consume at least some digital content, which is 7 percentage points higher than last year, according to a study from The NPD Group.
Among all consumers who purchased or rented digital content, 18% are digital-only video consumers, which is 4 percentage points higher than last year, according to the report.
Still, among consumers who consume both physical and digital video content, 86% continued to purchase physical video discs in 2017.
“In the lifecycle of digital-video adoption, the early-adopter phase has finally given way to the majority phase,” said Ricardo Solar, SVP of video entertainment for NPD, in a statement. “Even so, among consumers who consume both digital and physical video content, the vast majority are still buying and renting physical discs.”
Growth in digital video purchases was driven mainly by heavy users who completed more than four transactions over the previous three months, NPD found. While these consumers represented just one-third of digital video purchasers, they comprised 69% of all transactions last year.
More than half of heavy digital video buyers purchased at Amazon and iTunes, and they over-index at Google Play and Vudu, as well, according to the report.
Digital video rental, or internet video-on-demand (iVOD), also grew last year, due to rental activity from both light and heavy users. Amazon was the retailer of choice for digital rentals, but heavy internet-video renters also over-indexed at iTunes, FandangoNow and Redbox On-Demand.
The research findings come from The NPD Group’s latest “Entertainment Trends in America” report, which is based on a consumer survey fielded from January to February 2018.