DTS / Nielsen Entertainment Research Study Affirms Growth Trends For Home Theatre, Surround Sound; Consumers Becoming Sound-Savvy, Choosing Audio Options

27-Oct-05

DTS, Inc. has announced the results of a DTS-commissioned study conducted in conjunction with Nielsen Entertainment Research, showing growth in the home theatre and surround sound marketplaces. Revealing the importance of surround sound to the DVD market, the study shows the impact on DVD purchases as well as current and projected penetration of home theatre systems. ""DTS has long recognized the growth potential of the home theatre and surround markets and will continue to help build this segment by educating consumers about surround sound and DTS,"" said Jon Kirchner, President and CEO of DTS. ""Today, even as low resolution music formats have become popular among people on-the-go, millions of consumers are discovering the immersive entertainment experience offered by true surround sound and are purchasing high resolution home theatre systems. This is exciting news for our industry."" STUDY RESULTS Supporting the conclusions of the Nielsen Entertainment study, separate published reports by the Consumer Electronics Association estimate that by the end of 2004, 33% of U.S. households owned a home theatre system, up from 21% at the end of 1999. Adding to the ownership levels, in an online survey of 2000 adults ages 18 to 65 across the U.S., Nielsen Entertainment determined that a full 75% of current home theatre households have true 5.1-channel or greater surround sound installed, indicating the importance of sound to the home entertainment experience. These figures are reinforced by marked increases in sales of DVD-based software over the past several years, coupled with the significant price decrease on systems from a multitude of consumer electronics manufacturers. The Nielsen Entertainment study also revealed a distinct upward trend in the role that sound plays in enhancing the entertainment experience. A full 73% of home theatre owners and 76% of surround sound owners indicate that upgraded surround sound is the most important special feature on DVDs. The study showed that surround sound owners are proactively selecting the sound format at the beginning of a movie, with 82% citing that they ""always"" or ""sometimes"" choose an audio format at the beginning of a movie (up 27% compared to the previous year.) Surround sound owners are avid DVD purchasers and play a significant role in the consumption of DVD movies. According to the Nielsen Entertainment study, owners of home theatre systems featuring surround sound purchase over 20% more DVDs than non-home theatre owners. Additionally, home theatre owners with surround sound systems own 45% more DVDs that non-home theatre owners. Nearly 60% of home theatre owners and 63% of surround sound owners are aware of DTS, and DTS-aware consumers own a significantly higher proportion of DVDs versus those consumers not DTS-aware. The study also found that consumers aware of DTS strongly agree that the DTS brand reflects superior audio technology and quality. The study concluded that surround owners represent a broad segment of the DVD population: The majority of surround sound consumers range in age from 25 to 54 years old with annual household incomes ranging anywhere from $25,000 to $150,000.

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