NPD Debuts VideoWatch for Home-Video Retailers and Manufacturers

New home video tracking service provides first-ever view of U.S. home video market

PORT WASHINGTON, NEW YORK, July 7, 2004 – NPD Music & Movies, a division of The NPD Group, today announced the launch of the first comprehensive source for home video sales information and insights. Each week VideoWatch collects detailed information about the home video rental and purchase habits of America’s consumers. VideoWatch tracks rentals and sales at traditional outlets as well as emerging distribution channels such as subscription, pay-per-view (PPV), and video on-demand (VOD).

VideoWatch provides access to detailed competitive information for the retailers across the gamut of shopping channels, from mass-market retailers like Wal-Mart to specialty video stores like Blockbuster. Competitive pricing information is compiled for all legitimate film genres and titles and includes videos from all major production and distribution companies, including Universal Music Group, Warner Home Video, MGM, Fox, Sony, and Paramount.

"What makes VideoWatch so compelling is the wealth of information about the home video marketplace, and we believe it will be the benchmark for consumer information about specific video titles, retailers and genres" said Russ Crupnick, vice president of The NPD Group. "VideoWatch provides precise and detailed profiles of who is buying or renting videos, where they shop, what they pay, and what motivates them to buy. Studios and retailers can monitor their existing consumer franchise or get detailed competitive information"

With information delivered to subscribers on a monthly basis with available historical data since October 2003, NPD’s VideoWatch allows businesses to see consumer-reported home video information, including the following:

  • Market-share information (both unit- and dollar-share)
    • Transaction type (purchases, rentals, PPV, VOD, paid downloads)
    • Formats: New, used, gifts
    • Retailers and channels (all outlets)
    • Demographic segments (including age, gender, race, region)
  • Customer profiles
    • Demographics, purchase motivators, advertising and retail merchandising/POP influences, pricing, dealing, retail customer satisfaction, end viewer demos, gift buying, viewing prior to purchase
  • Potential Target Markets
    • Whether Movie Theater viewers are likely to rent or buy the video
    • Whether renters are likely to purchase the video
    • Cross-category purchasing -- what other categories do video buyers shop for, and purchase, while in stores?

VideoWatch In Action: "Finding Nemo" at Costco

By way of example, the following metrics are based on VideoWatch information about consumer video or DVD purchases of "Finding Nemo" in relation to overall sales, as well as sales at membership warehouse retailer Costco:

  • More than half of consumers who purchased "Finding Nemo" were age 25 to 34; however, those who purchased it at Costco were older--half were between the ages of 35 to 54.
  • Two-thirds of "Finding Nemo" buyers were women.
  • Nearly half of those purchasing this title at Costco bought it as a gift, versus 43 percent of the "Finding Nemo" buyers overall.
  • Half of "Finding Nemo" buyers did not see the movie in the theater prior to making the purchase--only about one-third of buyers reported seeing the movie previously in the theatre.
  • 39 percent of Costco's "Finding Nemo" buyers also purchased a food/snack item, 15 percent purchased an item in Health & Beauty aids, and 15 percent also purchased a book or magazine.
  • Special displays had impact on potential buyers of "Finding Nemo" – 18 percent of buyers claimed the display influenced their purchase.
  • Twenty percent of "Finding Nemo" buyers reported that a TV ad motivated their purchase.
  • Buyers cited a host of reasons for their purchase, including the following: "Good for the entire family" (50 percent), "Add to collection" (37 percent) and "Bought it for a child" (53 percent).

"At The NPD Group we’re continually striving to create new products that provide meaningful information that is unavailable from any other source," Crupinick said. "VideoWatch is yet another example of granular insight into the consumer’s mindset that can help companies make better, fact-based decisions that positively affect the way they conduct business."

Source: VideoWatch collects video acquisition information on a continuous basis from members of NPD’s online consumer panel of more than 2.5 million registered members. Detailed purchase information is collected from an average of 3,000 video buyers and renters each week. This information is balanced to represent the U.S. population, age 18 and older.

About NPD Music & Movies
NPD Music & Movies, a division of The NPD Group, provides reliable in-depth perspective on the most important issues facing today's music and home video industries. VideoWatch and its companion MusicWatch are the flagship information services from NPD Music & Movies. MusicWatch Digital covers critical issues concerning consumers’ use of digital music including downloading and CD burning habits. NPD Music & Movies offers you information resources that guide you in understanding today’s marketplace, and prepares you for tomorrow.

About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games.

For more information:
Lee Graham
For The NPD Group, Inc.
leegraham@leegraham.biz
212-333-4983