SOURCE: The Diffusion Group

April 16, 2008 17:21 ET

Consumers Warming to Web-Enabled DVD Features

New Report From The Diffusion Group Examines Consumer Interest in Web-Enabled Features for Next-Generation DVD Platforms

DALLAS, TX--(Marketwire - April 16, 2008) - According to new research from TDG, consumers are interested in having new web-enabled features on their next DVD player, a good sign for both studios and technology vendors looking to deliver interactive, customized media experiences to the home living room.

"Though there is much discussion about which platform is best suited to introduce web and PC-like functionality to the home entertainment center, few platforms have the legacy of the DVD player," notes Michael Greeson, TDG President and author of new report. "The DVD player diffused very deeply, very quickly, more so than other types of video platforms."

This unique diffusion history, argues Greeson, makes the DVD player especially suitable for introducing Internet functionality to the home TV and beyond. Competing platforms such as game consoles and PCs face significant challenges: penetration growth is slowing for game consoles (most purchases being replacement- or upgrade-driven versus first-time buys), while PCs are widely viewed as too complex for a "living room" experience. The DVD platform, on the other hand, is seen as inexpensive, reliable, and very simple to use, notes Greeson. "It escapes me why vendors have yet to figure out that by adding Internet support and a few compelling web-enabled features to a simple DVD player will increase the use of media networking in general and TV-based web video consumption in particular."

Greeson does acknowledge that not just any web-enabled feature will fit the bill and that the appeal of different applications will vary by consumer segment and diffusion timeline. For example, 37% of consumers are interested in having the ability to see updated movie previews or trailers (a benefit of the DVD player having access to a host of complimentary video stored on the web). On the other hand, only 13% of consumers were interested in new media communication features such as simultaneous IM or chat during DVD viewing.

Consumer Receptivity to Web-Enabled DVD Features analyzes TDG's latest primary research regarding consumer interest in a series of Internet-enabled features likely to be included in next-generation DVD players. The report includes a detailed discussion of which factors (including gender, age, tech-adopter status, advanced CE ownership, and proclivity to purchase a new DVD player) are most strongly correlated with each feature or attribute.

The report is now available on TDG's website ( or by contacting the firm at 469.287.8050.

About The Diffusion Group (TDG):

TDG is an analytics and advisory firm helping companies in the connected home and broadband media markets. Using a unique think-tank approach that blends executive-level consultants and in-depth market research, TDG generates reasoned and pragmatic insights that help clients make intelligent market decisions. TDG produces more than just research -- we create Intelligence in Action®.

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