Online movie downloads make up 0.3% of movie rental industry

NPD Group measured consumer activity for the first 6 months of 2004. The activity at present is modest with paid movie downloads accounting for just 0.3% of video units that were purchased or rented. MovieLink accounted for 33% of all sales followed by MovieFlix with 13%. NPD Group found that 80% of users are males and that one out of four between are between the ages of 18 and 24. Half of download renter are presently under age 35 and 80% are under age 45. These ages are notable in that they are slightly younger than the sweet spot for those who purchase digital media devices, which is the 25 to 35 year old group.