From Primal Scream to Florence and the Machine - Britain's Digital Media Evolution Revealed

HP Survey Puts Average Briton's Digital Media Collection at GBP482

LONDON, May 17, 2010 - An HP survey into the evolution of digital media in Britain
has revealed that while we're not in the Dark Ages when it comes to the
progression from physical to digital ownership of media, we're far from being
Space Age.

The survey of over 1000 British consumers, aged between 16 and
60, shows that people of all ages are still wedded to physical formats such
as CDs and DVDs. They also currently attach little monetary or emotional
value to the digital content they own.

While 86% of the population access some form of digital media,
68% still prefer photographs to be physical rather than digital, 64% for
music, 75% for films and a massive 95% for books. While the 16-24 and 25-34
age groups are the most enthusiastic when it comes to digital media, many of
them (39%) are still purchasing CDs and DVDs alongside digital formats. The
move to subscription-based models is even more far out, with 73% of the
sample saying that they can never see a time when they'd move to a 100%
subscription model for their music and films (such as Spotify).

"In this technologically driven age it is easy to get carried
away and think that everybody is embracing digital and leaving physical
behind," says Shaun Hobbs, Home Server Manager for HP PSG UK and Ireland.
"Our survey shows that this isn't the case. Britons are on an evolutionary
journey with media still being bought on multiple formats and enjoyed using a
variety of devices."

The research suggests that Britons are treating their media
collections more as a utility rather than a personal purchase. 71% say they
have never lost their media library and are not worried about security while
27% put their digital media collection's value at less than GBP50. Contrast
this to how we value our CDs, DVDs and books and it's clear Britons have a
different approach to digital rather than physical.

Adds Hobbs: "We're not yet ready to give up the old ways of
purchasing media. However, the survey shows that the benefits of being able
to access and enjoy a much broader range of content thanks to the Internet
are also clearly appreciated. It's a safe bet to assume attitudes will change
to favour digital over physical but at present, we're happy to have both."

According to the research, 86% of Britons enjoy some form of
digital media, with the desktop PC (56%) being the main access device
followed by laptops (47%), DVD players (28%), MP3 players (25%) and mobile
phones (18%). 14% said they did not access any form of digital content.

Addressing this new era of digital media, HP's MediaSmart
Server (basically a small PC but with lots of storage) acts as a central
'store' for music, films, pictures and other digital content allowing people
to protect, share and enjoy their media on any Internet-connected device
whether it's in the home, on a mobile or in another country. Where it's via
the free iPhone app, through an X-box or PS3 or through a secure,
personalised URL, MediaSmart Server lets you stream your favourite playlists
(using an in-built iTunes server), family photos, films and other digital
media to a device and location of your choosing.

The MSS is available from GBP429 (inc VAT) from the HP UK site
(h41112.www4.hp.com/promo/mss/uk/en/index.html?jumpid=re_r10104_uk/en/hho/psg/attach_hpstore_promoindex-ot-xx-pu-servers/chev-fl704aa_4537/)

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Note to editors: The full report is available on request.
Please contact +44(0)20-3047-2000 or psguk@edelman.com

Please contact +44(0)20-3047-2000 or psguk at edelman.com