September 10, 2008

The NPD Group

"Entertainment Trends in America" report reveals boomers are key demographic segment for digital products and marketing;

Baby boomers who stream video 15 percent more likely to buy a CD, DVD, or movie tickets


The NPD Group, Inc.

Lee Graham, 212-333-4983

[email protected]


According to The NPD Group, a leading market research company, online activities once mainly popular with teens and young adults, are now enjoying active participation by baby boomers, too. Recent consumer surveys of U.S. consumers show that 61 percent of baby boomer Internet users (age 44 to 61) had visited sites that offer streaming or downloadable video (e.g., YouTube and TV network Web sites), while 41 percent had visited social networks (e.g., Linked- In, Facebook, and MySpace).

"There's an ongoing misperception that certain Web activities are the exclusive domain of young people," said Russ Crupnick, entertainment industry analyst for The NPD Group. "That misperception could cost the entertainment industry, in terms of lost opportunities to target valuable consumers."

NPD's "Entertainment Trends in America" tracking study reveals that more than half of all Web users (57 percent) visited a social networking site in past three months. Although young Web users (13- to 34-year-olds) are significantly more likely to visit social networking sites -- and to visit them more often -- baby boomers who visited social networking Web sites did so an average of 8 times over the previous three months.

When it comes to the Web's effect on sales of traditional entertainment content, NPD found that baby boomers who engage in activities, like social networking or video streaming, are also more likely to buy DVDs, CDs and go out to the movies. NPD noted that, on average, baby boomers who stream video are also 15 percent more likely than their non-streaming counterparts to buy a CD, DVD, or movie tickets.

"As more consumers of all ages spend more time online, there's potentially going to be less time for them to consume entertainment content in traditional ways," Crupnick said. "These findings underscore the growing need for entertainment companies to promote and distribute digital entertainment content online, in order to keep pace with the changing needs and desires of consumers of all ages."

Web shopping and other activities

The use of email and Web surfing was nearly universal among Web users surveyed by NPD (97 percent). Online shopping was another prevalent activity among Web users of all ages; eight in 10 Web users shopped online sometime during the prior three months. Teens and young adults reported less online shopping activity than older consumers, perhaps owing to the fact that many teens do not have access to credit cards.

Data note: Information in this press release was derived from The NPD Group's "Entertainment Trends in America" consumer surveys. Data was based on a sample of more than 11,000 consumers, and results were balanced to reflect the Internet-connected U.S. population aged 13 and older.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit

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