NPD: U.S. Consumers to Maintain Entertainment Spend

PORT WASHINGTON: The NPD Group’s Entertainment Trends In America study has found that most American consumers plan to maintain or increase their spending on movies, video games, digital downloads and other forms of entertainment this year.

Some 73 percent of consumers surveyed indicated they would spend the same or more on theatrical movies; while 75 percent said they would spend the same or more on digital music downloads and 65 percent will spend the same or more on video games. In addition, 51 percent reported purchasing a DVD or Blu-ray disc in the prior three months. Purchasing a console or portable video game ranked second at 36 percent, followed by purchasing a CD at 31 percent. At present, the per capita spending on entertainment is $160, with the bulk of that going towards TV and Internet access subscriptions. The only notable decline in spending NPD observed were for magazines and newspapers.

“Even in the face of a down economy, entertainment remains a popular spending category,” said Russ Crupnick, an entertainment industry analyst for NPD. “Most consumers say they’ll continue to purchase at least the same amount of many entertainment categories in the coming year.”

He continued: “There is anxiety about the economy among entertainment buyers, increasing use of unpaid digital options for entertainment and competition for the entertainment dollar, but consumers have clearly shown that compelling content will get them back into the stores or theatres.”