CENTRIS Study Reveals: Sixty Million, Over Half -55%-, U.S. Households Can Watch a DVD Movie; Only Two-Thirds of Them Have a Regular DVD Console Player.

Entertainment Editors/Business Editors

LOS ANGELES--(BUSINESS WIRE)--July 17, 2003

Just under half can watch a DVD on at least two different devices.

% Annual growth: Portables lead; Consoles, ROM,

and Video Games still exceed 40%

DVD players aren't just replacing the VCR on top of the living room TV set. The DVD technology is permeating numerous consumer electronics products as well as the PC universe. For the first five years since console players hit the street in April 1997, the focus has very much been on the installed base of these set-top devices, which according to CENTRIS's most recent monthly report in early June 2003 (over 6 years after launch) is 41.7 million households.

This should not be confused with other widely published supply-side industry numbers that reflect unit shipments. This consumer data shows that 25% of the 41.7 million homes own multiple DVD console players. "As the rate of growth in console sales slows -- sales do continue as the price drops and multi player households increase -- expansion to the installed base is coming from other platforms, which the studios simply cannot ignore," says Jerilyn Kessel, Co-founder of CENTRIS.

The specific devices are DVD ROM drives in PCs, DVD-enabled video game players such as Sony Playstation 2 and the Microsoft X-Box and the more recent surge of portable (including auto) DVD players. "Growing ownership of these devices expands the DVD console installed base by 45%, to what we refer to as the 'DVD enabled' installed base of 60.3 million households," Kessel reports.

Expanded DVD Installed Base - An Abstract

-- 16% of all households have a DVD console only and no other DVD

devices; 7% have a DVD ROM only, 5.4% have a DVD-enabled Video

Game system only and 2.5% have only a Portable DVD player.

-- DVD ROM only households really do watch DVDs on their PCs. In

fact, about 800,000 rent at least one DVD each month and about

900,000 purchase at least one DVD each month.

-- The largest pairing of devices is console and ROM at 8.1% of

all households followed by console and video game at 5.1%.

From another CENTRIS analysis we know that DVD console & ROM

combo owners are the most active in the software market.

-- Sony Playstation 2 owners are 3-4 times more likely to put a

DVD in their game console than are X-Box owners.

In CENTRIS's daily Omnibus survey there is an extensive battery of DVD related questions involving hardware and usage activity. Much of this data has been tracked since inception of the device. There has also been on-going, periodic tracking of Awareness and Purchase intent for DVD consoles, DVD ROM, and recently, DVD recordable consoles. Proprietary inserts for clients have included interest in, usage of and satisfaction with title-specific DVD special features, title purchase intent, advertising awareness, purchase outlet, price paid for title, brand of DVD player owned, etc.

Next month, CENTRIS will be publishing a study, A Definitive History of Consumer Adoption of DVD. This 100+ page report will cover 5 years of trended installed base and activity data, segment profiles and attitudinal metrics. It is based on over 200,000 consumer interviews. The analytics will provide perspective on how DVD entered the marketplace against the backdrop of other competing and complementary technologies that CENTRIS tracks. For more details visit http://www.centris.com/ after July 22. The study is available to the general public, in addition to CENTRIS subscribers.

About CENTRIS

CENTRIS is a consumer research and information services firm tracking home entertainment and technology, specializing in the digital and broadband world along with cable, satellite, home video, music, motion pictures, the Internet and other telecommunications. CENTRIS' core service is a specialized daily omnibus service that yields 1,000 nationally projectable interviews each week, profiling more than 100 consumer electronics, entertainment, telecommunications and geo-demographic household measures. The 100 Core metrics that accompany proprietary inserts into its Access omnibus generate many syndicated analytic and database products. CENTRIS is headquartered in the Philadelphia area with an office in Santa Monica.