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Consumer entertainment spending weathers economic downturn

According to a tracking study by market research The NPD Group, most US consumers plan to hold steady or increase their entertainment spending in 2009, despite the economic downturn. According to the report, 51% of consumers surveyed purchased a DVD or Blu-ray disc in the prior three months. Purchasing a console or portable video game ranked second at 36%, followed by purchasing a CD at 31%.

NPD says 75% of consumers surveyed said they will spend the same amount or more on digital music downloads as they did in 2008. Some 65% will spend the same or more on video games, and 60% will spend the same or more on CDs.

Nearly three-quarters (73%) of consumers expect to spend the same amount or more on theatrical movies; and based on comparison to last year’s statistics, the theatrical movie category appears to be in the best position for growth, as only 66% of survey respondents said they would spend the same or more last year.

Current per capita spending on entertainment in the US is $160 per month, with the bulk of that spending going to dedicated subscriptions mostly related to TV and Internet access. Despite predictions that consumers would trim entertainment subscriptions, the only notable decline in spending NPD observed were for magazines and newspapers.

Even though the entertainment industry appears poised to ride out the recession better than others, Russ Crupnick, entertainment industry analyst for NPD advises caution. “There is anxiety about the economy among entertainment buyers, increasing use of unpaid digital options for entertainment and competition for the entertainment dollar,” Crupnick said, “but consumers have clearly shown that compelling content will get them back into the stores or theatres.”

The NPD Group’s study is based on more than 10,000 completed responses from US consumers aged 13 and older.

Story filed 16.04.09

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