Digital movie purchase and rental transactions increased 19% in the first half of 2018, compared to the previous-year period, according to new data from The NPD Group.
The research group said that as TV-connected devices become commonplace in U.S. homes more consumers are choosing to rent and purchase digital movies, according to a survey of 5,677 U.S. consumers, aged 18 and older fielded from July 30th through Aug. 7, 2018. Trend is compared to the August 2017 survey, which fielded during a similar period last year.
As of August 2018, 61 million households in the U.S. had at least one Internet-connected TV, video game console, Blu-ray Disc player or streaming media player, representing year over year growth of three million. Specifically, households with an Internet-connected TV increased 20% and those with streaming media players grew 17%.
“Growth in digital movie transactions is being driven, in part, by access to TV-connected devices as an increasing number of viewers can simply buy and rent movies right in their living room,” John Buffone, executive director, industry analyst, NPD Connected Intelligence, said in a statement. “While greater access begets consumption, certain digital movie providers facilitate ownership over renting.”
Among the top five digital movie providers, iTunes users have the highest propensity to buy over rent, because Apple’s movie consumers are more affluent and more apt to collect movies. In the 12-months ending August 2018, nearly 24% of iTunes movie transactions were motivated by a desire to build a digital collection, leading to more buying than renting, according to NPD’s VideoWatch Digital service.
Vudu customers were also more ownership focused than the average video consumer, as such 20% of transactions were motivated by collecting. In contrast collecting movies only drove 13% of Amazon Video digital movie transactions, 9% of Google Play movie transactions, and 4% of Microsoft Store movie transactions.
“It’s long been known that collectability drives ownership and that’s no difference in the digital era,” said Ricardo Solar, president of media entertainment for NPD. “Movie fans will always want to own great films, as such, provider agnostic services like Movies Anywhere are critical for enabling digital sales growth.”