Nielsen Study Shows DVD Players Surpass VCRs

Most Media Technology Trending Up, According to Nielsen's Quarterly Home

Tech Study

Dec 19, 2006, 00:00 ET from Nielsen Media Research

    NEW YORK, Dec. 19 /PRNewswire/ -- Nielsen Media Research released
 findings today from its 3rd Quarter Home Technology Report which show that
 more U.S. households now own DVD players (81.2% of all households) than
 VCRs (79.2% of households). Findings from this quarterly study also show
 ownership of most media technology trending up from previous years, which
 could continue to climb as the upcoming Christmas season approaches.
     As of third quarter 2006, DVD penetration in the U.S. is up 6% from the
 previous year and continues to grow, while VCR penetration has started a
 decline. In 1999 when Nielsen first started tracking DVD ownership in its
 Home Tech Report, DVD penetration was only 6.7% and was dwarfed by VCR
 ownership at 88.6%.
     Nielsen's latest report also found that DVD households now rent DVDs
 about twice per month, compared to VCR homes renting VHS tapes only about
 once per month. The frequency with which households rent video tapes has
 leveled off during the past six months.
     "This study shows the culmination of a long battle for share of
 consumers," said Paul Lindstrom, senior vice president of custom research
 for Nielsen Media Research. "Nielsen clients have used information from our
 Home Tech Report for the past decade to trend the changes in penetration
 and report use of new devices as they infiltrate the marketplace, and we
 now see that the popularity of DVDs has finally surpassed that of VCRs."
     Some additional topline findings from Nielsen's Home Tech study include:
     * Computers -- 73.4% of U.S. homes currently have a computer in the
       household, and homes with children and teens are more likely to have a
       home computer.  There is a large difference in the percentage of lower
       income homes vs. higher income homes that own a home computer.  Homes
       with an income over $60K are 50% more likely to own a home computer than
       homes with an income below $60K.
     * Internet -- 95.4% of consumers with Internet access go online at least
       once a week, and 37.3% of Internet users go online more than once a day.
       78.2% of online users have made purchases over the Internet. 46.8% of
       online users (ages 12+) have used the Internet to download and play
       music from the Internet.
     * MP3 Players -- 26.7% of U.S. homes own or rent an MP3 player.
       Households with the presence of children 12-17 years of age are nearly
       2-1/2 times more likely to own or rent an MP3 player than compared to
       the Total U.S. The percentage of homes owning an MP3 player has risen by
       149.5% since 3rd Quarter 2003.
     * PDA -- 16.4% of U.S. homes own a PDA, and since 3rd quarter 2003, PDA
       ownership has increased by 4.5%.  Not surprisingly, higher income homes
       are more than four times as likely as lower income homes to own a PDA.
     For charts that illustrate the five-year penetration trends, please
 see: .
     Nielsen's Home Technology Report is a primary research survey conducted
 by phone with 1,253 randomly selected American homes four times per year.
 Issued quarterly to Nielsen clients as a supplement to their syndicated TV
 ratings service, for the past 10 years the Home Tech Report has been
 Nielsen's gauge of the penetration and usage of technology into American
     About Nielsen Media Research
     Nielsen Media Research is the leading provider of television audience
 measurement and related services, worldwide. In the United States,
 Nielsen's National People Meter service provides audience estimates for all
 national program sources, including broadcast networks, cable networks,
 Spanish language networks, and national syndicators. Local ratings
 estimates are produced for television stations, regional cable networks,
 MSOs, cable interconnects, and Spanish language stations in each of the 210
 television markets in the U.S., including People Meter service in ten
 markets and electronic set-metered service in 46 markets. For more
 information, please visit
     Nielsen Media Research is a unit of VNU, a global information and media
 company with leading market positions and recognized brands in marketing
 information (ACNielsen), media information (Nielsen Media Research),
 business publications (Billboard, The Hollywood Reporter, Computing,
 Intermediair) and trade shows. The privately held company is active in more
 than 100 countries, with headquarters in Haarlem, the Netherlands, and New
 York, USA. For more information, visit
                  Table 1: DVD vs. VCR Penetration in the U.S.
                             3Q     2Q     1Q     4Q     3Q     2Q     1Q
                            2006   2006   2006   2005   2005   2005   2005
     % of Homes with DVDs  81.2%   80.9%  81.4%  80.8%  76.5%  77.6%  78.5%
     % of Homes with VCRs  79.2%   82.3%  82.3%  82.9%  82.9%  80.9%  82.2%
            Source:  Nielsen Media Research's Home Technology Report
              Table 2: Penetration of Media Devices in U.S. Homes
                     3Q 02   3Q 03   3Q 04   3Q 05   3Q 06  % Diff 05
                                                               vs 06
     DVD             41.4%   59.8%   71.2%   76.5%   81.2%     +6.1%
     VCR             87.5%   86.7%   84.7%   82.9%   79.2%     -4.5%
     Wired Cable     65.9%   62.7%   65.2%   62.2%   63.5%     +2.1%
     Satellite       20.9%   22.3%   22.2%   26.0%   26.5%     +1.9%
     Internet Access 61.4%   63.9%   64.4%   68.1%   68.5%     +.06%
     PC              66.4%   69.5%   71.7%   74.0%   73.4%     -.08%
     Cell Phone      65.0%   67.1%   72.0%   73.8%   75.2%     +1.9%
     PDA             13.9%   15.7%   16.4%   16.3%   16.4%     +.06%
     MP3 Player       7.6%   10.7%   12.8%   16.9%   26.7%      +58%
            Source:  Nielsen Media Research's Home Technology Report

SOURCE Nielsen Media Research