Premium programming still 'value purchase'

Nearly 40 percent of U.S. internet-enabled households subscribe to premium entertainment services that offer DVD delivery, music downloads or video games on demand, according to a report released Wednesday by market research firm The NPD Group.

The reason, according to NPD, is that consumers today are looking for value. "For just a few dollars a month consumers can get a vastly expanded library of movies, music or gaming options,” Crupnick said, “and that represents real value, especially as many consumers are economizing by spending more time at home." The firm found that 18 percent of web households subscribe to a DVD delivery service like Netflix, while six percent subscribe to an online music service like Rhapsody or eMusic. Satellite radio claims 12 percent of such households, while premium gaming offerings like Xbox Live attract 12 percent as well.

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