Apple looks like a pretty big fish in the video on demand business -- if you ignore Netflix
According to iSuppli, now a unit of IHS (IHS), iTunes' share of U.S. consumer spending for movie electronic sell-through (EST) and Internet video on demand (iVOD) grew 1.4 percentage points year over year to 65.8% in the first half of 2011. That, according to iSuppli, is a reversal of a several-year trend in which Apple was losing ground to upstarts like Amazon (AMZN), Microsoft's (MSFT) Zune, Sony (SNE) Playstation and Vudu, now part of Wal-Mart (WMT).
But the fact is that all these services live in the shadow of Netflix (NFLX), which according to an NPD study last March is the real giant of online video on demand with a 61% share compared with Apple's 4%, DirectTV's (DTV) 4% and Time Warner Cable's (TWC) 4%.
The difference is that Netflix delivers the bulk of its content to televisions, which is where most Americans watch their video, as opposed to computers, tablets or game machines.
And even Netflix's business pales compared with DVD sales, according to a report issued two weeks ago by NPD.
"[Pundits have] proclaimed the end of physical media and the supremacy of the digital age," wrote NPD's Russ Crupnick in a Aug. 8 blog post. "That age will come eventually, but today many more people buy DVDs than watch Netflix streaming."
Below: iSuppli's spreadsheet.
Despite fierce competition, iTunes commanded a 64% share of the (legal) market in 2010
The online movie market may be Apple's (AAPL) to lose, but it hasn't lost it yet.
According to an IHS Screen Digest report issued Monday by iSuppli, the iTunes Store's share of the U.S. market for downloaded movies (see below re streaming) fell nearly 10 points last year, from 74.4% in 2009 to 64.5% in 2010.
But as IHS MOREPhilip Elmer-DeWitt - Feb 7, 2011 3:08 PM ET
The company uses a mix of subscriber information, user ratings, rentals, and cool computer algorithms to predict what kinds of entertainment you might enjoy streaming.
Back to Reed Hastings: Leader of the packMichael V. Copeland, Senior Writer - Nov 18, 2010 12:00 AM ET
Executives from Silicon Valley to Hollywood to Wall Street admires his savvy persistence - and his company's cool culture. The secret to the Netflix CEO's success? He never stops looking over his shoulder.
Reed Hastings isn't supposed to be here -- not on a list of the year's top businesspeople, and certainly not on the cover of Fortune. His DVD-by-mail company, Netflix, was supposed to have flamed out by now, a MOREMichael V. Copeland, Senior Writer - Nov 18, 2010 12:00 AM ET
Steve Jobs loves to rattle off nice round numbers, and he just delivered a ton of them
Here, in descending order, are the ones we heard at Apple's (AAPL) fall product review Wednesday. Assume each was preceded with a "more than" or "over" unless otherwise indicated.
11.7 billion songs downloaded from iTunes
6.5 billion apps downloaded from the App Store, 200 per second
1.5 billion game and entertainment downloads to the iPod touch
450 million MORE
Jon Fortt - Jan 8, 2010 11:56 AM ET
How To Recommend Movies (and Win $1 million)
It was like the machine learning world's version of "American Idol" Monday in New York: A seven-man multinational group dubbed BellKor's Pragmatic Chaos was awarded $1 million by Netflix (NFLX) CEO Reed Hastings as the winners of the Netflix Prize.
Cooked up three years ago by Hastings, the Netflix Prize challenged all comers to improve the recommendation technology used by the online movie rental MOREMichael V. Copeland, Senior Writer - Sep 21, 2009 10:15 AM ET
Penelope Patsuris - Jul 21, 2009 1:51 PM ET
Apple issued two nice round numbers on Thursday.
First, it announced that the number of songs purchased and downloaded from the iTunes store since it opened on April 28, 2003 has passed the 5 billion mark. This represents a continued acceleration of music sales. It took Apple (AAPL) nearly three years to sell its first billion songs (Feb 23, 2006), ten months to sell its second billion (Jan. 6, 2007), seven MOREPhilip Elmer-DeWitt - Jun 19, 2008 10:17 AM ET
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