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Movie Rental Behavior and Proclivity to Use Online Movie Services

Published by: The Diffusion Group (TDG Research)

Published: Jul. 7, 2007 - 59 Pages


Table of Contents


1.0 Introduction

2.0 Methodology

3.0 Overview of Movie Rental Behavior

3.1 Number of Movies Rented

3.2 Rental Methods Used

3.3 Overlap of Rental Service Usage

3.3.1 Among Brick-and-Mortar Renters

3.3.2 Among Direct-Mail Rental Subscribers

3.3.3 Among PPV Users

3.3.4 Among VOD Users

4.0 Evaluating Downloaded Movie Rentals

4.1 Comfort Downloading Movies from the Internet

4.2 Familiarity with Online Movie Download Services

4.2.1 For Purchasing Movies

4.2.2 For Renting Movies

4.3 Specific OMD Rental Services Used

4.4 Number of Movies Rented From OMD Service

5.0 Profiling Movie Renters

5.1 Movie Consumption

5.1.1 Number of Movies Rented by Channel

5.1.2 Number of Movies Purchased

5.2 Attitude toward Online Movie Downloads

5.2.1 Comfort with Downloading

5.2.2 Familiarity with OMD Services

5.2.2.1 For Renting Movies

5.2.2.2 For Purchasing Movies

5.2.3 Interest in OMD Services

6.0 Demographic Characteristics

6.1 Gender

6.2 Age

6.3 Education

6.3.1 Current Level of Education

6.3.2 Current Full-Time Students

6.4 Income

6.5 Number of Children in the Household

6.6 Number of Adults in the Household

6.7 Technology Adopter Status

7.0 Reflections and Recommendations

7.1 Competition from Direct-Mail Rental

7.2 Online Movie Rentals

7.2.1 General Comments

7.2.2 Diffusion of OMD Usage

7.2.3 Online Movie Rentals versus PPV/VOD

7.2.4 Online Movie Rentals versus “The Video Store”

7.2.5 Online Movie Rentals versus Direct-Mail DVD

7.3 The Possibility of an iTunes Rental Service

7.4 Final Thoughts on OMD

Appendix




List of Figures

Figure 1 Number of Movies Rented Last Month

Figure 2 Consumer Use of Various Movie Rental Methods

Figure 3 Use of Other Rental Services Among Video Store Customers

Figure 4 Use of Other Rental Services Among Direct-Mail Subscribers

Figure 5 Use of Other Rental Services Among Pay-Per-View Users

Figure 6 Use of Other Rental Services Among Video On-Demand Users

Figure 7 Comfort Downloading Movies from the Internet

Figure 8 Familiarity with Online Movie Download Services for Purchasing

Movies
Figure 9 Familiarity with Online Movie Download Services for Renting Movies 21

Figure 10 Online Movie Services Used For Renting

Figure 11 Number of Movies Rented from OMD Service Last Month

Figure 12 Number of Movies Rented Last Month by Rental Method

Figure 13 Number of Movies Purchased in Last Six Months by Rental Method

Figure 14 Comfort Downloading Movies by Rental Method

Figure 15 Familiarity with OMD Rental Services by Rental Method

Figure 16 Familiarity with OMD Sell-Through Services by Rental Method

Figure 17 Interest in Purchasing a Movie from an OMD Service by Rental

Method
Figure 18 Gender of HoH by Rental Method

Figure 19 Age of HoH by Rental Method

Figure 20 Level of Education of HoH by Rental Method

Figure 21 Full-Time College Student Status by Rental Method

Figure 22 Annual Household Income by Rental Method

Figure 23 Number of Children by Rental Method

Figure 24 Number of Adults by Rental Method

Figure 25 Technology Adopter Status by Rental Method

Figure 26 HDTV Ownership by Interest in Purchasing Movies for Download and

Burn-to-DVD



List of Tables

Table 1 Comparison of Average Movie Rentals among Frequent and

Infrequent Users
Table 2 Cross-tabulation of Familiarities with OMD Movie Rentals and

Purchases
Table 3 Number of Desktop PCs in the Household (HH) by Rental Method

Table 4 Number of Laptop PCs in the HH by Rental Method

Table 5 Number of Televisions (All Types) in the HH by Rental Method

Table 6 Number of HDTVs in the HH by Rental Method

Table 7 Number of Game Consoles in the HH by Rental Method

Table 8 Number of Stereo Speakers (Pairs) in the HH by Rental Method

Table 9 Number of Digital Video Recorders (DVR) in the HH by Rental Method

Table 10 Number of Stand-Alone DVD Players in the HH by Rental Method

Table 11 Number of Stereos in the HH by Rental Method

Table 12 Home Theater Ownership by Rental Method

Table 13 Number of Portable Digital Music Players in the HH by Rental Method

Table 14 Number of Portable Media (Video) Players in the HH by Rental

Method
Table 15 Number of Portable Game Consoles in the HH by Rental Method

Table 16 Number of Personal Digital Assistants in the HH by Rental Method

Table 17 Number of Smartphones in the HH by Rental Method

Table 18 Comfort Using PC as Central Home Entertainment Center

Component by Rental Method
Table 19 Number of Digital Photos on PCs by Rental Method

Table 20 Number of Digital Music Files on PCs by Rental Method

Table 21 Number of Digital Video Files on PCs by Rental Method

Table 22 Familiarity with Home Networking by Rental Method

Table 23 Gender by Rental Method

Table 24 Age Segment by Rental Method

Table 25 Ethnicity by Rental Method

Table 26 Education Level by Rental Method

Table 27 Full-Time Student Status by Rental Method

Table 28 Annual Household Income by Rental Method

Table 29 Marital Status by Rental Method

Table 30 Residence Type by Rental Method

Table 31 Census Region of Residence by Rental Method

Table 32 Type of Area of Residence by Rental Method

Table 33 Number of Children in the HH by Rental Method

Table 34 Number of Adults in the HH by Rental Method

Table 35 Level of Computer Skills by Rental Method

Table 36 Technology Adopter Status by Rental Method

Table 37 Political Affiliation by Rental Method

Abstract

Today's movie renters have a myriad of options for shopping, selecting, and receiving their movies, including brick-and-mortar video rental stores (e.g. Blockbuster);Pay-Per-View (PPV) or Video-On-Demand (VOD) services offered through their cable or satellite TV service; direct-mail rental services (e.g., Netflix), as well as online movie download (OMD) services (e.g., CinemaNow, Movielink, or iTunes). While all of these services compete with one another, few consumers use only one type of service; most choose instead to use the one that best suits their needs at the specific time.

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