This report explores the market for digital movie sales and rentals, including all television and film programming sold via an intangible file. Commentary throughout provides actionable insights to digital marketers and brand managers via the review of innovation in the market and the attitudes and habits of consumers in relation to digitally transmitted content, as well as DVDs and Blu-ray.

Discussion is based around sales data, the competitive context created by the collapsing physical disc market and its possible rejuvenation, the drivers behind movie purchasing, the wider implications of cultural shifts in media usage, and the practices of leading purveyors of digital content. Topics explored also include attitudes to high-definition (HD) content, willingness to pay a premium for it, and the role of demographics in sales with separate discussion regarding single parents, Hispanics, and blacks. Mintel’s proprietary research is also presented by age and household income, including where digital movies are purchased, how consumers select their store of choice, and how they decide when to buy physical discs and when to buy digitally distributed content.

For the purpose of this report, digital movies consist of sales of subscription streaming services, VOD purchases from pay TV providers, and rentals and sales from digital movie stores, including Amazon Instant Video, iTunes, VUDU, Best Buy CinemaNow, and other online stores that sell or rent films via internet service. Sales and discussion include TV programming sold through these distribution channels.

The focus of this report is on the purchasing habits of adults age 18+, but commentary on market potential among teens and kids is also discussed.