iTunes on Movie Share Upswing: Report Credits AirPlay and iPad

  • The recent IHS Screen Digest Media Research report indicates that Apple’s iTunes held the number one spot for movie electronic sell-through (EST) and Internet video on demand (iVOD) with 65.8 percent of the market in the first half of 2011. The Zune Video Marketplace was second with 16.2 percent, while Walmart’s Vudu came in third with 5.3 percent.
  • The research suggests much of Apple’s success can be traced to AirPlay which allows you to stream wirelessly to other devices including TVs.
  • “IHS believes that the ability to stream media from Macs or iOS devices to an Apple TV or third-party AirPlay receiver has prompted users to buy more movies from iTunes — presumably so they can AirPlay them to somewhere else,” reports Ars Technica.
  • It should be noted that Amazon spent this period shifting its strategy to streaming video on demand (SVOD), which IHS ranks in a separate space from iVOD. According to the article: “Amazon still saw a small bump from 4 percent in the first half of 2010 to 4.2 percent a year later, showing that users are still sticking by Amazon’s ‘old’ service.”

Ustream Launches iPad App, Supports AirPlay Wireless

  • Ustream launched its first iPad-optimized app this week. According to TechCrunch, the app “allows users to view live and recorded content streaming through the service — and to stream their own footage direct from their iPad 2.”
  • The company released its Android app on Honeycomb two weeks ago. There is also an iPhone version available.
  • The free Ustream app supports AirPlay, which means users can stream whatever they are watching on their iPad 2 to bigger screens.
  • “The AirPlay support is especially nice because while the video is projected onto your TV you can still use your iPad for chatting and social stream,” writes Gizmodo.
  • Ustream will also allow users to broadcast their own videos using either of the iPad 2’s cameras.

Apple may Offer Streaming Video to Devices via AirPlay

Apple is considering adding streaming video to its AirPlay service, which currently allows users to stream audio from an iPhone, iPad or iTunes to a home stereo or other devices. According to Bloomberg, two people familiar with the matter (who asked to remain anonymous) suggested the new feature would enable streaming video from an iPhone or iPad to television sets — and that Apple would license its software to CE manufacturers who could potentially use AirPlay in their devices for streaming movies, television and other video content.

Expanding AirPlay functionality could possibly spark more use of Apple devices and services in the home, despite the company’s limited success selling the $99 Apple TV set-top box thus far. Bloomberg reports that, “For Apple, AirPlay is a way to expand into the living room without having to introduce new products.”

While Apple and others such as Google are looking to explore the possibilities of streaming video and Web-connected televisions, a challenge for streaming content from a mobile device involves bandwidth issues and whether signals can be carried without interruption. Regardless of any technical obstacles, there is clearly a shift in how consumers are accessing TV shows and movies, with an increasing number of people accessing instant streaming services from the likes of Netflix and Hulu. Apple’s Steve Jobs — banking on a complete shift from physical media toward content distribution in digital form — has gone so far as barring Blu-ray players from Mac computers.