Consumers think they already have high-def

FROM CES: NPD shows only 10% of DVD buyers plan to trade up

By Jennifer Netherby -- Video Business, 1/9/2007

JAN. 9 | LAS VEGAS—Talk of consumer confusion has been a main focus at high-definition DVD events at CES this week, and research released by NPD Group at a press conference Monday shows just how confused most consumers are.

NPD found that 85% of consumers surveyed think they’re buying high-definition DVD movies, but many of these movies weren’t available in high-definition. Of those that thought they were buying a high-def movie, 59% don’t even own a high-definition DVD player.

Russ Crupnick, NPD VP and senior entertainment industry analyst, said the research shows that the industry needs to do a much better job of educating consumers to avoid costly returns for buying incompatible product and convincing consumers of the need to buy a high-def player.

At this point, not many consumers plan on buying a high-definition player in the immediate future. NPD found just 10% of DVD buyers plan to buy a high-def DVD player in the next six months, which Crupnick called a “startlingly low number.” Between 70% and 80% say they definitely won’t be buying a high-def player.

Those that are buying high-definition players fall into the early-adopter demo: primarily male, ages 25-34 or over 55, college graduate, income topping $100k and action-adventure fan. Early high-def DVD adopters also skew Hispanic and tend to live in the Pacific census region.

They’re more likely to buy DVDs than rent movies, but they’re also 2.5 times as likely to download movies than mainstream consumers, according to NPD. Crupnick said because of that likelihood, digital downloads could become a serious competitor to high-def DVD once an easy solution comes into play that can deliver Internet movies to the TV.

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