49% of Movie Goers Prefer Watching films on DVD

According to a recent national study by Guideline, Inc. one of the nation’s largest providers of custom business researchand analysis,85 percent of consumers typically watch movies at home on the small screen. Even when it’s a movie they want to see, 49 percent of respondents said they usually wait to purchase or rent the DVD.

To better understand consumers’ perceptions and preferences related to their consumption of movies, Guidelineconducted an exclusive survey last month of 1,000 consumers. Furthermore, to ensure the survey addressed all of the current issues facing the movie industry, Guideline worked with members of the Promotional Marketing Association’s (PMA) Entertainment Advisory Board, which represents all of the major studios in Hollywood, CA companies, to help craft the survey.

Guideline’s Vice President of Marketing Frank Dudley will be presenting the full survey findings today at the PMA’s 15th Annual StarPower conference held June 6-7 at the Universal Globe Theatre in Universal City, Calif. He’ll share with conference attendees how movie consumption is evolving and how this impacts marketing and promotional opportunities.

"Guideline’s study affirms that DVD spending and consumption remain strong with more people enjoying movies from the comfort of their homes than in the movie theater," said Dudley. "However, despite the many movie-viewing options available, a quarter of consumers still prefer the big screen."

According to Guideline’s survey, men are more likely (28 percent) to go to the cinema to see the movie before it comes out on DVD, and women are more likely (31 percent) to wait for the movie to be released on DVD so they can rent it. Gender aside, 22 percent usually go to see the movie on the big screen first.

There are several reasons why these movie fans prefer to see their flicks in the theater. Most of the survey respondents (46 percent) just simply like seeing movies on the big screen. Another 46 percent of respondents, particularly younger moviegoers, share the opinion that it’s a fun activity. Also, the survey found that consumers like to see the movie as it was meant to be seen, eating popcorn and watching the movie without interruption.

Because a movie’s box-office gross revenues decline about 50 percent each week following its release, there has been much debate about simultaneous and accelerated releases to DVD. Guideline’s survey indicated that 56 percent said releasing the DVD shortly after a movie comes out has no effect on their motivation to buy or rent the movie. And, another 20 percent say that they think it must be a bad movie and are less motivated to buy or rent it.

Regardless of when the DVD is released, sales continue to grow. According to the 2005-2009 Communications Industry Forecast on The DVD Market, DVD spending grew 33 percent to $21.29 billion in 2004 and DVD rental sales grew 39.2 percent to $5.73 billion in 2004.

Regarding DVD purchases, the survey revealed that DVD owners fall into one of two categories – casual buyers and collectors. Approximately 49 percent of consumers consider themselves to be casual buyers of movies and almost one-fourth (24 percent) of the consumers surveyed consider themselves collectors. Most consumers (68 percent) say they purchase a movie if it’s one they really want to see. Others (52 percent) are motivated by price. And, 20 percent are influenced to buy because of the special features found on a DVD.

Guideline will be conducting a webinaron June 28, 2006 at 1 PM ET. To register for the webinar, please visit http://guideline.webex.com/event.