Online Movie Business: Netflix Leads Competitors, Including iTunes

  • A new report from market research firm IHS iSuppli indicates that Netflix is now the dominant force in the online movie business, dethroning Apple’s iTunes.
  • “The firm credits Netflix’s success with its focus on TV-like subscriptions, which it sees as superior to the company’s DVD mail service or iTunes’ more traditional video on demand (VOD) model,” reports Ars Technica.
  • The report’s numbers note that Netflix went from 0.5 percent of the online movie market in 2010 to 44 percent in 2011.
  • Despite bumping up its prices, Netflix made deals with Apple, Microsoft, Roku, and others to be included in set-top boxes and dramatically increased its accessibility in 2011.
  • “Comparatively, Apple fell from 60.8 percent in 2010 to just 32.3 percent in 2011. The number three player, Microsoft, also fell between 2010 and 2011 — from 16.7 percent to 7.6 percent,” adds the post.
  • The online video market doubled revenue in that time frame and is expected to double again in 2012.

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