NPD: Continuing Grim Outlook for UMDs

Next Generations covers a new report on the Sony PSP from NPD Group that finds while "multi-functionality is a key selling-point for the system, owners are generally indifferent to its UMD capabilities." The study said "almost two-thirds of PSP owners own movies or TV shows on UMDs, and two-fifths bought the system because they found its UMD capabilities to be "very important," but "even though many considered the PSP's UMD functionality important upon purchase, no one seems to be buying the format on a consistent basis."

NPD Group stated that "the intent of owners to buy classic movies and TV shows on UMD is about three times the actual purchase rate, implying that there isn't enough compelling UMD content available to coax potential consumers to fully adopt the format."

Anita Frazier at The NPD Group said, “Success of the UMD format depends on several key factors. PSP users state the main barrier to purchasing UMDs is price, followed by the available movie/TV selection. If the right content was priced more competitively with DVDs, UMD sales may see a lift. Additionally, UMD sales may benefit if manufacturers and retailers focus on raising awareness and providing easier access.”

In the no-brainer category, NPD also found that "gaming and downloaded music files are the top uses for the handheld -- good news for game publishers and developers."

Count my family in the category of owning zero UMD movies with no intention to purchase any in the future. They just don't offer a compelling value proposition/usage model in my opinion. For free, I can just rip DVDs and transfer them to the PSP's Memory Stick Pro Duo. It's a pain, but it doesn't cost anything either....