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Viewing report
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On the Use of Game Consoles for Movie Viewing
The Diffusion Group, April 2007, Pages: 59
Today’s next-generation games consoles such as the Xbox 360 or Sony PS3 are true digital multimedia powerhouses. But do console owners purchase solely for gaming purposes, or as a multimedia component? Though capable of some form of DVD playback or online download, game console capabilities remain largely under-utilized by the majority of consumers and therefore a major hindrance to evolving usage models beyond gaming.
This report examines the use of game consoles for viewing movies on home TVs either directly (using an embedded or connect DVD drive) or indirectly (using an Internet adapter to access Web-based titles) and offers a top-level discussion of how operators can leverage the growing connected game console audience for delivering an “over-the-top” online movie download service.
Key Findings From the Report:
Approximately half of U.S. broadband households have at least one game console (GC) in the home with 15% having two or more game consoles;
Though the majority (80%) own a console capable of playing DVDs, only 30% stated that they owned a console that it actually enabled DVD playback - a fact that demonstrates how poorly many consumers understand the capabilities of today’s game consoles and a major barrier to persuading consumers to start using these platforms for non-gaming media consumption.
From the Report:
One of the primary obstacles to making online movie services profitable (whether sell-through or rentals) is finding a quick, easy, and inexpensive way to the living room TV. Of course, some will offer a new set-top box designed to deliver movies from the Internet directly to the TV (a la Apple TV). However, trying to get consumers to shell out the dough for a dedicated device ($399 in the case of Apple TV), not to mention adding yet another box to the home entertainment center, is a sketchy proposition.
Because there are and will be an increasing number entertainment devices that connect to both a television and a broadband Internet connection, it is important to understand the degree to which game consoles will
(a) be a good monitor for measuring the success of this new distribution method,
(b) aid in the diffusion of this new technology, and
(c) be a competitor for other online movie devices and services.
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