The report shows that 18% of spending is on Blu-Ray rentals and 7% on purchases, 9% is spent on video on demand services and 3% is spent on digital downloads.  This report did not look at free digital streaming sites, such as Hulu.com, which might have altered the results.  About 9% of consumers did report accessing paid streaming sites, compared to 5% last year.

Early adopters of digital downloads are also more likely to be DVD and Blu-ray purchasers.  80% of those using digital downloads also buy or rent DVDs and 25% buy or rent Blu-ray discs.  While discs are the most widely available option for consumers, the available methods of obtaining digital delivery are increasing rapidly.  Beyond delivery via cable boxes or satellite receivers, high definition content is also rolling out through streaming set-top boxes and game consoles. 

While DVD continues to reign in the majority of sales, it's falling behind rapidly in technical capabilities.  This week, Warner announced a social networking function being included in their upcoming Blu-ray Watchmen release.  Connecting over BD-Live, the disc will allow users to link up their Facebook friends list and choose a group of friends to simultaneously watch the movie while making comments.  The Watchmen release will also receive a same-day digital download launch on the day that physical copies are released.

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tom vinelli  - dvd     |2009-05-14 14:38:35 i think we all know over time this will change.if studios could get rid of dvd they would.i do think that all these technologys can co-exist. once the indestry get in people heads hi def is the way to go blu-ray will close in on dvd. there is one issue blu-ray needs to overcome and thats drm,some universal system.updates on players is something of a pain.after a player is not made anymore how long will there be updates for that player. people are not gonna replace there bd player every 2 years. 3   0

antennahead   |2009-05-14 17:26:48 Well that's just what I want..... Watchmen with the added value of social networking,lol. When are they gonna wake up to the fact the main reason BD is still way behind DVD is price, followed by a limited number of titles, although that is slowly changing. Junk, perceived added value like social networking, will not sway J6P away from DVD. Additional issues like very slow load times for a lot of players and the fact that most of America watches on a 50" or smaller set, make it very hard for BD to knock off DVD. When you factor in costs, tech issues, and "perceived" minimal differences in quality (mainly due to smaller monitor sizes), I think that BD at best becomes an entrenched niche product, riding alongside DVD ........ until one day bandwidth issues make downloads the norm. John 1   0

RM  - Blu-Ray   |2009-05-15 10:35:15 Not to re-hash the old debate here but I can tell you from personal contacts in the film industry that studio executives feel like they were deliberately misled about the price/capabilities of Blu-Ray versus HD-DVD. That plus the "signing bonuses" paid early dividends but gutted future sales. We are seeing that "gutting" in the numbers now. The simple truth is that Blu-Ray will never take off so long as a majority of households are 720P or lower, prices for a decent box hang out at $300.00+, and prices per disc remain near $30-40 dollars. Finally, everyone I know describes Blu-Ray as a "rental" technology. Get a player and a Netflix account and you're done. And, even worse for Blu-Ray, that attitude is resulting in people flocking to the Roku-Box and Blu-Ray devices with Netflix streaming built in. Blu-Ray has price-positioned itself into obsolescence AND opened up its own format to what I perceive will be a primary content competitor. Let's hope recent announcements by Sony change their strategy into something more consumer friendly -- but I doubt it. 0   1

KAW  - New technology   |2009-05-15 11:37:03 Most of the clients I encounter in the AV retail business simply want to watch a movie on a nice big screen display, many with a decent audio system. When replacing their DVD player, most opt for a Bluray, as it will also play their existing DVDs. They could care less about bluray live and downloads. Some also use video on demand from their Satellite or cable providers. The extras on Bluray have been appealing also. They certainly don't want to watch a movie on their phone or computer. Downloads and other new formats will be limited to the "connected" generation and probably, because there is always something new, at best be niche formats. Most consumers don't like something new every other month. Firmware update capability and backward compatibility will make Bluray a successful format. Additionally prices on both players and movies are dropping. 1   0

Matthew  - No way on this earth...   |2009-12-20 09:18:49 I have spent *thousands* on my DVD collection as it is a format I love. It was miles ahead of VHS as I could access any part of the disc with a few button presses, and it would never wear down like VHS. Further, it looked a million miles better than VHS. After watching DVD, VHS was unwatchable. Now here's Blu-Ray, it is the same kind of disc, I can still access chapters...it is as of yet offering nothing over DVD. Except it looks better, and sounds better if you have the stuff. But I can go from watching 1080p BD to watching upscaled DVD, and the upscaled DVD is NOT unwathcable. It looks fine. BD is better, but DVD is perfectly good. THAT is the reason I will not replace my thousands of pounds worth of DVD titles with BD's. You can sell them for the same as DVD's and I still won't. Upscaled DVD is great for me. I have a 1080p set, a PS3, a HD TV service...and one or two BD's, but will I spend Ł10,000 replacing my entire DVD collection? NO! Face it, BD is an enthusiasts format and it will have to live alongside the dominant format of DVD....for life. 2   0

Jacques Huntington  - Not Likely   |2011-07-24 14:43:56 If it seems unclear why blu ray isn't taking over, it's probably for MANY reasons. (1) For most people, dvd is good enough. (2) DVDs (unlike VHS) don't wear out. So there is no inevitable need. (3) DVD upgraders are a cheap (and good) alternative. (4) The difference between blu ray and dvd is not enough to convince the consumer (who already has the dvd) to upgrade. (5) Even people who have blu ray are complaining about difficulties. (Registration for starters.) (6) The age of physical media is dying. (To streaming) And while some people prefer physical media, DVD is good enough. 0   0

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