Subject: Clarification of NPD Methodology for 3/15/2011 Press Release
On March 15, 2011, The NPD Group issued a press release, “Six Out of 10 Digital Movies are Streamed via Netflix.” (npd.com/press/releases/press_110315b.html) We noted that the information in the press release was from VideoWatch Digital, based on online surveys of U.S. consumers age 13 and older conducted between January and the third week of February 2011. The final reporting was based on 10,618 completed surveys.
NPD has been asked about its methodology for its VideoWatch Digital consumer tracking service. As noted in more detail below, we provide a definition of the marketplace on which we are currently reporting with this service.
NPD’s VideoWatch Digital service currently covers downloaded or streamed movies sourced from electronic sell through (EST) and paid transactional Internet video on demand (e.g., Apple and Amazon), and Internet subscription streaming services (e.g., Netflix). VideoWatch Digital also includes transactional video on demand from cable/satellite/telco providers (e.g., Time Warner Cable, DirecTV, and Verizon FiOS). For such cable/satellite/telco providers, only those movies for which a separate additional per-movie fee is charged (and not, for example, movies included with cable/satellite/telco subscriptions or premium on-demand channels) are measured. For other providers generally, all movies included with subscriptions are measured, regardless of whether a per-movie fee is charged.
VideoWatch Digital currently does not cover all sources of digital video. For example, it does not cover free Internet movie streaming (e.g., free Hulu or network Web sites such as mylifetime.com). It does not measure movies from subscription cable/satellite/telco on-demand (e.g., HBO On-Demand, and free on-demand movies from cable/satellite/telco services (e.g., Cablevision “Free-On-Demand”). VideoWatch Digital also does not cover episodic TV shows, adult-rated content, or specials and events (e.g., sports or concerts).