Netflix Grabs 61% of U.S. Digital Movie Market, Apple at 4%

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Mar 15, 2011.

  1. MacRumors macrumors bot

    MacRumors

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    U.S. digital movie unit share for January-February 2011 (NPD)
    Last month, we reported that Apple was dominating the market for individual download and streaming movie content in the United States, representing nearly 65% of total spending. We noted at the time that the survey did not include streaming services such as Netflix and on-demand streaming offerings from cable companies, but new data from NPD on the broader market now puts those omissions into context.

    According to NPD's data, Netflix represented 61% of movies downloaded or streamed in the U.S. during January and February, easily topping second-place Comcast at 8%. Apple finished in a three-way tie for third at 4% with Time Warner Cable and DirecTV.
    According to NPD, digital video now makes up one quarter of the entire home video market in the United States, with customers increasingly embracing the instant and easy access aspects of digital video.

    Article Link: Netflix Grabs 61% of U.S. Digital Movie Market, Apple at 4%
     
  2. DeaconGraves macrumors 65816

    DeaconGraves

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    #2
    Time to call my stockbroker and buy some shares of Other. I think they have the best chance for knocking Netflix off the top.
     
  3. EvilC5 macrumors 6502a

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    #3
    lol, I had to think about that for a moment....:eek:

    its funny when you think back to blockbuster days....lines, late fees, etc....im so glad we are out of those dark ages.
     
  4. ctdonath macrumors 65816

    ctdonath

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    #4
    So, if I'm reading this right:
    - Apple gets 65% of viewers' money, while
    - Netflix delivers 61% of content viewed.
    No?
     
  5. Full of Win macrumors 68030

    Full of Win

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    #5
    Nothing to see here, just an example of the best rising to the top and the worst falling to the bottom. I wonder if Netflix, and their licenses, is a strategic opportunity that Steve Jobs was hinting at a few months ago.
     
  6. Charlie Sheen macrumors 6502

    Charlie Sheen

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    #6
    soon apple gets 30% of the netflix subscriptions because they have their app in the app store
     
  7. bassfingers macrumors 6502

    bassfingers

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    #7
    Of course they only got 4% percent with a $6 rental price. Worst price point ever
     
  8. Bistroengine macrumors regular

    Bistroengine

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    #8
    Of Netfilx's 61%, I'd be curious to see the breakdown of devices used to access their service. PC, Xbox, Net Connected TVs, Apple TV, iPad etc...
     
  9. zim macrumors 65816

    zim

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    #9
    We tried Netflix and were disappointed. Just about everything that we wanted to watch (movies) required a request for the DVD... maybe people are mostly watching TV over Netflix? Personally, I prefer download and own—especially with my daughter, she'll watch the same episode of Mickey Mouse Clubhouse like 15 times so buying once is a much better direction. I also prefer not having the commitment of yet another monthly bill.. even if it is only 8 or so bucks.
     
  10. nagromme macrumors G5

    nagromme

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    #10
    Each service has its place, and iTunes season passes are responsible for me not needing cable TV. (I’ve wanted to keep up with certain shows, like Battlestar Galactica, as they air, to avoid spoilers. Others I can watch a season late and not mind.) And then Hulu is nice when I miss an episode of a network show (which I watch via EyeTV).

    But if I had to pick one video service to take to a desert island it would be Netflix! The selection is too good.
     
  11. CalBoy macrumors 604

    CalBoy

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    Possibly, but not probably.

    Netflix does get revenue, but it's difficult to count those revenues in exclusively one category or another. Most Netflix customers probably get DVDs in addition to the unlimited streaming, so it becomes harder to count where the dollars belong (ie in DVD rentals or online video).

    My guess is that on aggregate Netflix probably comes close to Apple's revenue totals, simply because so many people have even a bare minimum Netflix account and will pay every month even if movie viewing declines for a while.

    I don't think that would be a wise move for Apple. There are dozens of other Netflix devices on the market, plus there would be no way for Apple to stake a claim to 30% of the entire billing cycle if the customer also streams video on a home TV or gets DVDs in the mail. It isn't discrete enough to "share" those revenues.
     
  12. ctdonath macrumors 65816

    ctdonath

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    I gave up on renting videos when, upon renting at a Blockbuster I hadn't been in before, the clerk loudly announced to all in earshot that he would have to check whether I was overdue on rentals at any other BB store. He couldn't just scan my membership card and, absent any pop-up warnings, hand me my rental and bid me a good day - he had to spend non-trivial time re-entering my personal info because somehow the previous 13 such events weren't shared by the central database. Didn't help that rentals were ~$4/night while purchases were $5 at WalMart. Rude, slow, inefficient, expensive, limited selection ... hello, Netflix & Redbox ...
     
  13. NebulaClash macrumors 68000

    NebulaClash

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    #13
    So a hobby from Apple can equal what Comcast and Time Warner get. Not bad for now. Apple is in the picture, at least.

    I know this much: the pie chart we see today will resemble nothing like the pie chart we'll see five years from now. The studios are trying to find ways of circumventing Netflix, so in five years we might see a big chunk going to Universal and Warner Brothers instead of Netflix.

    Anecdotally I've heard several people get interested in the newest Apple TV. I think it's an area where Apple will grow. But I don't think Apple can ever have an iPod-like share of this market simply because the studios don't want another Netflix to happen ever again.
     
  14. CaptainCanine macrumors newbie

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  15. vincenz macrumors 601

    vincenz

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  16. FriarNurgle macrumors regular

    FriarNurgle

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    #16
    How about the fact that Apple TV is the cheapest way to get Netflix on your TV?

    I've yet to rent anything from Apple with our ATV and probably never will... unless I find myself sitting on a bunch of unused iTunes gift cards.
     
  17. shartypants macrumors 6502a

    shartypants

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    Long term I'm sure Apple's percentage will go up, its doing the right things and its "pull" model will eventually dominate the more prevalent "push" model most of these use.
     
  18. Moyank24 macrumors 601

    Moyank24

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    #18
    Me too. I started using their service when I purchased my Apple TV, and found that I could watch on my iPhone and iPad as well. Definitely worth the $7 I think I'm paying.

    I wonder how many people just use the streaming on their computers, as opposed to all the different options you listed above. With all of the options that consumers have, it's definitely no wonder that they are dominant in this market.
     
  19. JonHimself macrumors 68000

    JonHimself

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    #19
    I would like to see that as well. Not so much number of accounts activated from certain devices but amount of titles streamed by each device.
     
  20. ctdonath macrumors 65816

    ctdonath

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    #20
    Mine is getting our money's worth out of Netflix with frequent streaming of Kipper, Thomas, Dora, etc. ... there's plenty to keep a kid preoccupied. AppleTV, thank you.
     
  21. DakotaGuy macrumors 68040

    DakotaGuy

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    #21
    It does not suprise me at all that Netflix is killing Apple in the digital movie market. I love my Netflix service and it is very cost effective. For about $15 a month (with tax) I can get one Blu-ray disc at a time and get unlimited streaming. That is a heck of a good deal compared to Apple. Unless Apple changes their business model to look more like Netflix I don't see them ever making a dent in this market.

    I don't see how anyone would think Apple's movie downloads are a better value then the Netflix service.
     
  22. ehoui macrumors regular

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    #22
    As much as the Netflix streaming library is crap, it is the first place we go when we want to see a movie. I haven't bought or rented an iTunes movie in forever.

    At this point, I'd rather see a price increase and better streaming selection from Netflix.
     
  23. RawBert macrumors 68000

    RawBert

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    #23
    I love Netflix. They have a great streaming service. It would be awesome if everything was available streaming though.

    Apple needs to jump into streaming live 'cable' channels ASAP. They could gain a lot of new customers - including me.
     
  24. Moyank24 macrumors 601

    Moyank24

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    +1

    The selection for kids is great. My son loves Thomas and although he can and does watch the same things over and over, he was thrilled to death yesterday when he got to choose which one he wanted. There were at least 10 for him to choose from.

    And the many Princess/Tinkerbell/Disney movies that I have access to on my iPhone and iPad has saved me in restaurants more than once.
     
  25. wordoflife macrumors 604

    wordoflife

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    #25
    Can't beat netflix, Apple. just can't.
    (especially when you are trying to get an extra buck with each purchase/rental)
     

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