DVD Market Penetration Reaches One-Third Of U.S. Households

22-Oct-01

DVD players have achieved remarkable sales levels in the four years since their introduction, earning the title of ""fastest selling consumer electronics product of all time."" However, according to the results of a new study by the Consumer Electronics Association (CEA), current adoption of DVD technology may only be the beginning of a much larger trend.The ""DVD Ownership And Market Potential"" survey finds that interest in owning DVD technology is staggeringly high among current non-owners. Nearly three quarters of those without a DVD player (73 percent) state an interest in purchasing one, and almost half of non-owners (46 percent) say they plan to do so within the next year. The survey also found that some form of DVD technology is present in one-third of all U.S. households. Among the formats included are stand-alone DVD players, DVD-enabled game consoles, and/or PC-based DVD-ROM drives.The largest contributing factor in the rapid adoption of DVD appears to be word-of-mouth recommendations from satisfied current owners. The survey finds that an amazing 94 percent of DVD owners are satisfied with their player and are telling others. In fact, family and friends were second only to product displays in stores as an information resource used when making a DVD purchase decision.Previous research showed that concern over a lack of available software titles was an impediment to adoption of DVD technology. This no longer appears to be a problem. The study finds that currently more than two-thirds of owners feel that all or most of the movies they want are available now. This is a tremendous increase over the 38 percent figure of February 2000.""Decreasing prices and the wide variety of available movie titles has made the upgrade to DVD a simple decision for consumers,"" said Gary Shapiro, President and CEO of CEA. ""This also has lead to an overall increase in home theatre sales, as consumers take advantage of the enhanced picture quality and surround sound capabilities of the format.""Another factor contributing to the positive future outlook for DVD is recordability. A majority of non-owners (73 percent) express that interest in owning a DVD player would increase if the device had a recording function. Eighty percent of current owners also state they would be likely to replace their current player with one that can record.The ""DVD Ownership And Market Potential"" survey was conducted via the Internet with a sample of 2,092 U.S. adults during August 2001. The complete study is available free to CEA member companies. Non-members may purchase the study for $499 by visiting www.eBrain.org or sending an e-mail to info@ebrain.org. For more information about the CEA, visit www.ce.org.

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