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Old Apr 23, 2013, 09:07 AM   #1
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Apple Continues to Dominate U.S. Online Video Purchase and Rental Markets




NPD today released a new report highlighting the U.S. online digital video market for 2012, finding that Apple continues to dominate both purchases and rentals.

In looking at purchased content, Apple holds a commanding 67% of the TV show market and 65% of the movie market, with its closest competitors Xbox Video and Amazon each holding roughly 10% of the market.

While the competition is tighter in the rental market, Apple still holds a solid lead with 45% of the market for digital movie rentals, with Amazon taking second place at 18%.

Quote:
"Apple has successfully leveraged its first-mover advantage and of iTunes, iOS and the popularity of iPhone and iPad to dominate the digital sale and rental markets for movies and music," said Russ Crupnick, senior vice president of industry analysis at NPD. "While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long."
Notably, NPD's study does not include subscription services such as Netflix and on-demand content from cable providers. Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.

Article Link: Apple Continues to Dominate U.S. Online Video Purchase and Rental Markets
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Old Apr 23, 2013, 09:15 AM   #2
nepalisherpa
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What I would like to see is Apple dominating even more in the iOS department. Bring out the newer/better iOS!
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Old Apr 23, 2013, 09:16 AM   #3
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Old Apr 23, 2013, 09:16 AM   #4
DJJAZZYJET
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iTunes + Mac = Seamless, beautiful and lightning fast.
iTunes + Windows = Ugly, complex and painfully slow.
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Old Apr 23, 2013, 09:18 AM   #5
nazaar
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it's ease of use for sure
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Old Apr 23, 2013, 09:19 AM   #6
newdeal
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itunes needs to be split into two, one for media organization alone and the second the store which combines mac, iOS, music, books etc all into one store. Purchases jump from one to the other but taking out the store from iTunes gets rid of the clunkiness.
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Old Apr 23, 2013, 09:22 AM   #7
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Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.


-------------------

damn...Netflix must be huge. $4 billion a year?
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Old Apr 23, 2013, 09:27 AM   #8
stanton
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damn...Netflix must be huge. $4 billion a year?
29.17 Million Subscribers and my guess is if they can get some footing in India and China, the numbers will soar.
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Old Apr 23, 2013, 09:27 AM   #9
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[url=http://www.macrumors.com/2013/04/23/apple-continues-to-dominate-u-s-online-video-purchase-and-rental-markets/]Notably, NPD's study does not include subscription services such as Netflix and on-demand content from cable providers. Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.
I'm curious as to what Apple would be at if just Netflix was added but I suppose that would leave out Hulu, etc.

Unless Hulu falls under other, which I doubt but I'm only guessing here.
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Old Apr 23, 2013, 09:32 AM   #10
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Originally Posted by EbookReader View Post
Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.


-------------------

damn...Netflix must be huge. $4 billion a year?
yeah, I still use Netflix for my movie and TV rentals. I do find Amazon to be useful though with the cloud player -- and it's great when you buy a movie from them on blu-ray, and it appears there in the cloud too.
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Old Apr 23, 2013, 09:35 AM   #11
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itunes needs to be split into two, one for media organization alone and the second the store which combines mac, iOS, music, books etc all into one store. Purchases jump from one to the other but taking out the store from iTunes gets rid of the clunkiness.
Is that not what iTunes 11 does already with the "Store <-> Library" button? Unless you mean make it into a separate app entirely. I'm not entirely sure what this would accomplish, unless I'm missing something.
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Old Apr 23, 2013, 09:39 AM   #12
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Haven't spent any additional money since I got my Netflix subscription over a year ago.
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Old Apr 23, 2013, 09:48 AM   #13
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So Apple has ~45% for rentals not factoring in Netflix and cable VOD, then it falls to 5%, but I assume there's no other [download] services to compare vs. purchasing, so they'd retain their 65-67%. I wonder what kind of revenue that represents and how it stacks up vs. physical media sales[?]

I'm actually a little surprised at how competitive MS/XBox is vs. Amazon.
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Old Apr 23, 2013, 09:51 AM   #14
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they got about 3 rentals out of me lifetime
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Old Apr 23, 2013, 09:54 AM   #15
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Amazon has original content. Netflix has original shows. That's what has made Netflix grow by two million streaming subscribers recently. I predict Apple wont keep up in this area since they don't give consumers a compelling reason to choose their service over rivals. Content is king where eyeballs are concerned.
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Old Apr 23, 2013, 10:03 AM   #16
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I think Apple should switch to on-demand pretty fast or this is a dead end. On-demand is the future.
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Old Apr 23, 2013, 10:04 AM   #17
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if only iTunes wasn't a huge pile of garbage on Windows those numbers would be even better
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Old Apr 23, 2013, 10:06 AM   #18
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In-Theatre Rentals

Apple TV needs to offer In-Theatre rentals of all major motion pictures.

I would set it up where they became available the week or two after opening weekend at a price point of around $40-$50 to rent for a 24 hour period.

Being a married man with a 5 year old, it is tough to get out to the movies to see the blockbusters especially in the summer time with numerous movies coming out week after week.

You figure that by the time my wife and I pay for a babysitter, 2 movie tickets, soda and popcorn we have already dropped ~$60-$80 for the night. Paying even $50 for a rental still saves us money, we are not on any time tables and we can watch the movies from home without having to deal with people's rude behaviors.
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Old Apr 23, 2013, 10:15 AM   #19
milo
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Quote:
Originally Posted by DJJAZZYJET View Post
iTunes + Mac = Seamless, beautiful and lightning fast.
Couldn't disagree more. While I like the new iTunes, and it's a bit faster, it's still way too bloated and slow for what it does.

Add in iTunes match and that multiplies the problems by ten. Wasn't this Apple's core business at one point? Why can't they get something as simple as a music player right?
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Old Apr 23, 2013, 10:22 AM   #20
BMNB1tch
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is this slide suppose to make me ignore NETFLIX surging business ?

who "buys" digital content anyway??

stream or gtfo
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Old Apr 23, 2013, 10:34 AM   #21
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Originally Posted by BMNB1tch View Post
is this slide suppose to make me ignore NETFLIX surging business ?

who "buys" digital content anyway??

stream or gtfo
how do you stream a Pixar movie? where do you stream it from?
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Old Apr 23, 2013, 10:35 AM   #22
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Quote:
Notably, NPD's study does not include subscription services such as Netflix and on-demand content from cable providers. Previous studies including those types of content have found Apple's market share shrinking to roughly 5% in the face of Netflix's overwhelming strength.

In other news, dirt is overwhelmingly the food of choice if one does not include supermarket and restaurant offerings in the study...
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Old Apr 23, 2013, 10:36 AM   #23
Jaredly
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Originally Posted by KindredMAC View Post
Apple TV needs to offer In-Theatre rentals of all major motion pictures.

I would set it up where they became available the week or two after opening weekend at a price point of around $40-$50 to rent for a 24 hour period.

Being a married man with a 5 year old, it is tough to get out to the movies to see the blockbusters especially in the summer time with numerous movies coming out week after week.

You figure that by the time my wife and I pay for a babysitter, 2 movie tickets, soda and popcorn we have already dropped ~$60-$80 for the night. Paying even $50 for a rental still saves us money, we are not on any time tables and we can watch the movies from home without having to deal with people's rude behaviors.
I absolutely love this idea. I dont know why I have never heard this before but it would be perfect. They could even charge $60-70 and it would be a good deal. Bringing a family of 4 to the movies could cost easily more than that after popcorn and drinks. After apple takes their 30% it has to be about equal to what the movie maker gets after the theater takes its cut. The only problem I can see is how to you prevent somebody from throwing a movie party and showing it to 50 of their closest friends. But I do like the concept.
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Old Apr 23, 2013, 10:36 AM   #24
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Everyone loves a winner! (Especially when the winner really has less than 5% of the relevant market).

Last edited by Doctor Q; Apr 23, 2013 at 11:02 AM. Reason: removed quote of removed post
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Old Apr 23, 2013, 10:39 AM   #25
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Amazon has original content. Netflix has original shows. That's what has made Netflix grow by two million streaming subscribers recently. I predict Apple wont keep up in this area since they don't give consumers a compelling reason to choose their service over rivals. Content is king where eyeballs are concerned.
If content is king then Netflix and Amazon Prime video would be dead!!! Those services have the most pathetic content of any video service! They are the wal-mart bargain bin of streaming video.

If content was king, then HBO Go and Hulu would have the most subscribers (maybe they do, who knows).

----------

Quote:
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Couldn't disagree more. While I like the new iTunes, and it's a bit faster, it's still way too bloated and slow for what it does.

Add in iTunes match and that multiplies the problems by ten. Wasn't this Apple's core business at one point? Why can't they get something as simple as a music player right?
Couldn't disagree more. iTunes and iTunes Match have been perfect and seamless for me. Why can only Apple even come close to creating something like iTunes?
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