DEG UNVEILS EXCLUSIVE STUDY ON THE PROSPECTS FOR HIGH DEFINITION MEDIA

Global Research Focuses On HDTV Owners’ Entertainment Preferences

February 3, 2009

DEG: The Digital Entertainment Group has issued an exclusive white paper that highlights a new global research study on the preferences and predispositions of HDTV owners toward high definition entertainment. The report, titled “HDTV Owners: The Prospects for High Definition Media,” was presented to media and analysts at a briefing in Los Angeles, as well as to colleagues from around the globe who participated via the web. The event also featured a panel of studio home entertainment presidents who expressed their unified support of the project and shared their views on this important subject. Based upon an independent study conducted this fall by the market research firm SmithGeiger, the survey measured the inclinations and behavior of more than 1,100 HDTV owners in the United States; along with 500 HDTV owners each in the United Kingdom and Japan. Respondents were encouraged to state their views on a variety of HD topics; along with their opinions on HD media including digital downloading, streaming and Blu-ray Disc. Among the primary findings, HDTV owners familiar with HD media prefer Blu-ray over other options. “The results of this global study clearly show that HDTV owners are enthusiastic about high definition content and are familiar with a variety of HD delivery systems,” said Amy Jo Smith, Executive Director, DEG. "The research further shows that HDTV is transforming the home entertainment landscape and is paving the way for other emerging platforms such as Blu-ray Disc." Respondents were asked to assess their overall satisfaction with HDTV and with the various cable, satellite and telco services currently available. They were also asked to compare the entertainment experience associated with viewing HD programming on various formats and platforms, including digital downloading or streaming via a set-top box or PC extender; movies viewed on a portable media player; and both upconverted standard definition DVDs and full high definition (1080p) Blu-ray Discs. According to the DEG research, 96 percent of Blu-ray Disc users are also familiar with downloading and streaming services with two-thirds stating “watching a movie on Blu-ray is a better overall entertainment experience.” Moreover, HDTV owners familiar with Blu-ray favor the format over downloading and streaming by a nearly 10 to one margin, with almost 70 percent of those respondents citing the fact that “you actually have a physical disc that you can keep” as a key factor in their decision to buy Blu-ray. Additionally, nearly nine out of 10 Blu-ray users express likelihood to recommend the format to potential buyers. The results suggest that high definition has had a remarkable effect on consumer lifestyles everywhere. It also shows that while HD digital downloads and streaming offer potential for the future, HDTV owners strongly believe that Blu-ray delivers a better value proposition, offering not just superior picture and sound quality but interactivity, collectability and greater convenience. To request a copy of the white paper report, please contact the DEG at 310 888 2201, via email at getinfo@digitalentertainmentinfo.com or through its Web site at www.degonline.org.

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