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

[jonnysods]

Bam! Just signed up for Netflix today.

I'm an ATV user, but I can't argue with the price. We easily rent more than two movies a month from Apple, so it makes sense to move.

Sorry Apple!

 

[Amazing Iceman]

Netflix already has the infrastructure and wide selection of content to offer, plus the DVD/BluRay by-mail option as well, all for a fixed monthly fee. There's no per-movie basis revenue.

Apple and other services charge per rental only, so to the occasional viewer a per-rental charge would make more sense, while the rest would prefer a fix monthly fee.

Comcast's 8% (and other CableTV providers) don't add up well to this equation, as their streaming service is both supplementary to their current CableTV subscribers (free content), plus they offer rentals and pay-per-view. Their 8% doesn't show what percentage is free content and what's not. I would imagine the same does apply to DirectTV.


It's also interesting to notice that Hulu doesn't show as a piece of the pie. it seems to have lost the battle, and that it must be part of the 19% conglomerate together with Vimeo, YouTube, etc., and the many others struggling to succeed.

 

[AidenShaw]

So Apple should sell out some of that 50 billion in cash and buy netflix.

And after the purchase, will Apple:

A: deliberately put Netflix out of business to help Itunes?

or

B: meddle with their operations so much that "A" happens?


Perhaps if Apple bought Netflix, and shut down Itunes it would be a wise investment.

 

[jmcrutch]

I enjoy Netflix for TV shows and some movies, but everyone is kidding themselves if they actually believe that they'll be able to continue this model for the long run. One of two things is going to happen - either the monthly charge is going to go way up, or the content available will actually decrease.


2 years from now Netflix's unlimited streaming package will cost $19.99 per month. And, it still won't have that extensive of a selection, as compared to the rental models. Distributors do not enjoy giving away their content.

If it weren't for the bad deal that Starz! agreed to, there would hardly be any new releases to watch.

 

[longball11]

Netflix already has the infrastructure and wide selection of content to offer, plus the DVD/BluRay by-mail option as well, all for a fixed monthly fee. There's no per-movie basis revenue.

Apple and other services charge per rental only, so to the occasional viewer a per-rental charge would make more sense, while the rest would prefer a fix monthly fee.

Comcast's 8% (and other CableTV providers) don't add up well to this equation, as their streaming service is both supplementary to their current CableTV subscribers (free content), plus they offer rentals and pay-per-view. Their 8% doesn't show what percentage is free content and what's not. I would imagine the same does apply to DirectTV.


It's also interesting to notice that Hulu doesn't show as a piece of the pie. it seems to have lost the battle, and that it must be part of the 19% conglomerate together with Vimeo, YouTube, etc., and the many others struggling to succeed.

Boom Shaka Laka! Blu-ray is on the rise and the reason Apple is still at the bottom with their content and disbelief to have bluray!

 

[ericinboston]

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

Barely....many $119-$129 Bluray players offer Netflix and have for years such as my Samsung I bought Jan 2010.

AppleTV of course is not BR and vice versa...but at least BR is 100% full HD while AppleTV is still the watered down 720 from 1998.

The #1 reason why I have not bought an AppleTV is the lack of 1080. It's just ridiculous. On a side note, I'll be watching my major league baseball this year from MLB.tv at 1080 which is CHEAPER than the AppleTV MLB.tv @ 720! Go figure!

Also, the whole movie-over-the-internet topic is so overblown and has been discussed on MR a zillion times...Bluray (and likely dvd) will be here for at least another 10 years because movie-over-the-internet is at least 10 years from primetime due to internet speeds, connectivity quality, movie quality, ability to fast forward/pause/rewind, etc. How often does Youtube fail in some fashion (latency, speed, buffering, etc.)?...50% of the time at least for anything 720 and higher...and I'm on a 25Mbit downstream wired connection which I know is pulling at 20-25Mbit at any given moment.

 

[bluebomberman]

People. Read.

The first report, Apple has 65% of the online video market's total revenue, excluded Netflix and all the cable companies.

The second report shows Netflix has 61% of total units, not total revenue. Which is not surprising considering that Netflix is one of the only providers that have an all-you-can-watch plan. Netflix probably gets a fraction of the revenue per unit (movie or TV episode) compared to competing services.

You can't draw conclusions that Apple or Netflix are dominating the online video market simply by looking for the biggest piece of the pie chart.

 

[Amazing Iceman]

Boom Shaka Laka! Blu-ray is on the rise and the reason Apple is still at the bottom with their content and disbelief to have bluray!

That's one Apple non-sense I still don't get. Perhaps Apple believes that optical media has no future? For example, Snow Leopard installation comes on a USB stick rather than on a DVD, obviously because the MacBook Air has no built-in DVD.

I believe Apple wants the world to be connected and able to access all kinds of content (both personal and public) over the internet.

 

[jclardy]

This data makes sense.

This is showing the percentage of digital movies streamed or downloaded.

Netflix -> $7.99 -> Infinite video streaming
Apple and all others in the list -> $7.99 -> 2 or 3 movie rentals or one download

I like Netflix, but they really need to make some new streaming content deals, they haven't added anything that great in the last few months since their Starz deal.

And Apple's digital downloads and rentals are just too expensive when you have services like Redbox.

 

[hofer]

Time again to voice my disgust with the rental selection at itunes. Case and point: Last night I wanted to rent Iron Man from 2008. It is not for rent, but I could purchase it for 9.99/16.99 (HD). I long for the day where you could just swing by Blockbuster, and at least find what I wanted. For now I stick with redbox, at least you know that all of the movies advertised are available for $1 a piece.

It is not a mystery to me why Apple have only a 4% share.

 

[Amazing Iceman]

People. Read.

The first report, Apple has 65% of the online video market's total revenue, excluded Netflix and all the cable companies.

The second report shows Netflix has 61% of total units, not total revenue. Which is not surprising considering that Netflix is one of the only providers that have an all-you-can-watch plan. Netflix probably gets a fraction of the revenue per unit (movie or TV episode) compared to competing services.

You can't draw conclusions that Apple or Netflix are dominating the online video market simply by looking for the biggest piece of the pie chart.

Yep, it's not the same to count how many candies you gave away for free and how many candies you actually sold, and how much money you made.

i was surprised to see that YouTube didn't have the biggest piece of the pie, as tons of video content is streamed by them every second.

 

[jmcrutch]

^ Optical media is a dying breed. Fact.

 

[jmcrutch]

Yep, it's not the same to count how many candies you gave away for free and how many candies you actually sold, and how much money you made.

i was surprised to see that YouTube didn't have the biggest piece of the pie, as tons of video content is streamed by them every second.

Yeah - it's like comparing the number of hours people listened to music on the radio in 1987 with the number of cassette tapes sold through Camelot and Turtles.

 

[ericinboston]

^ Optical media is a dying breed. Fact.

Everything dies. Optical has been around since 1980 if not earlier. I can guarantee you that Bluray and DVD will be here (as well as audio cds) for at least another 10 years if not longer.

Physical media will always exist...humans like to have something they "own" that they can touch and keep...and not worry that some business who is supposedly guarding it won't go out of business or sell out or burn down.

 

[Amazing Iceman]

Time again to voice my disgust with the rental selection at itunes. Case and point: Last night I wanted to rent Iron Man from 2008. It is not for rent, but I could purchase it for 9.99/16.99 (HD). I long for the day where you could just swing by Blockbuster, and at least find what I wanted. For now I stick with redbox, at least you know that all of the movies advertised are available for $1 a piece.

It is not a mystery to me why Apple have only a 4% share.

The problem with RedBox is that you'll have to drive to it to pickup and to return. The day you forget to return, you have to pay for an extra day.
And as with every new title, you'll risk the chance of not being able to get it.

And what if it's 11:00pm and you are in bed with your spouse and feel like watching a movie at that time? By the time you return with it, he/she will be asleep, and the mood killed.

This also shows the importance to compare Apples to Apples and Oranges to Oranges (no pun intended); RedBox doesn't have a video streaming service, so it's not part of the pie.

 

[jmcrutch]

Everything dies. Optical has been around since 1980 if not earlier. I can guarantee you that Bluray and DVD will be here (as well as audio cds) for at least another 10 years if not longer.

Physical media will always exist...humans like to have something they "own" that they can touch and keep...and not worry that some business who is supposedly guarding it won't go out of business or sell out or burn down.

You might like optical media and there's nothing wrong with that, but to deny that its death is imminent is nonsensical.

Show me 10 teenagers who listen to music on optical discs. Those teenagers (who only listen to music via harddrives and solid state drives) will grow up and become adults who have children, none of whom will ever own a single optical disc of anything.

 

[Amazing Iceman]

^ Optical media is a dying breed. Fact.

I haven't played a CD in a very long time; I still use DVDs, but haven't upgraded to BluRay yet. I find it more convenient to stream my own movies using AirVideo on my iPad connected to my TV using the AV Component Cable.

I could still use BluRay on my MAC used to backup data, but I find it slow and prompt to failure, plus it takes a lot of power and time, so I prefer to use multiple external hard drives for that.
Also, I haven't recorded any data to a DVD+R in a very long time, and to a CD I don't even remember.

 

[geko29]

So, if I'm reading this right:
- Apple gets 65% of viewers' money, while
- Netflix delivers 61% of content viewed.
No?

No.
Netflix delivers 61% of content viewed.
Apple gets 65% of revenue for content NOT distributed by Netflix, Time Warner, Comcast, DirecTV, and an undisclosed portion of "other"

 

[Kadman]

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.

Actually, it's not the cheapest. We have a couple of Roku boxes here. You can get them for $59, $79 or $99 depending on what capabilities you want. Even at $79 you get a 1080p device with Netflix, Amazon Video on demand, Pandora, Hulu Plus, etc. As someone already mentioned, many new TVs and BD players already have Netflix players as well.

 

[ivan2002]

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.

Netflix streaming library is outstanding.
It's your taste that's crap.

 

[ericinboston]

You might like optical media and there's nothing wrong with that, but to deny that its death is imminent is nonsensical.

Show me 10 teenagers who listen to music on optical discs. Those teenagers (who only listen to music via harddrives and solid state drives) will grow up and become adults who have children, none of whom will ever own a single optical disc of anything.

1)I never said optical would NOT die...some day it will. And for all we know we could be using little USB Key thingies instead (no moving parts required) or cartridges like the old Atari 2600 days.

2)"Teens" is a very small age bracket...13-19. What about all the folks in their 20s, 30s, 40s, etc? They're people, too. I'm 41...100% of my 20-30-year-old cousins as well as 100% of my nieces and nephews (all 6-12 years old) still have and use cd audio and dvd. Sure...some purchases are iTunes songs but they all still have their $9.99 cds that they can bring and play anywhere. Not every 9 year old has a $150 iPod.


I see both sides of this coin...people have been yapping about a digital-only world for decades. People are human...we like things we can touch and hold and store in our bookshelf. We question the purchase of a "service" that provides a virtual object.

 

[Iconoclysm]

1)I never said optical would NOT die...some day it will. And for all we know we could be using little USB Key thingies instead (no moving parts required) or cartridges like the old Atari 2600 days.

2)"Teens" is a very small age bracket...13-19. What about all the folks in their 20s, 30s, 40s, etc? They're people, too. I'm 41...100% of my 20-30-year-old cousins as well as 100% of my nieces and nephews (all 6-12 years old) still have and use cd audio and dvd. Sure...some purchases are iTunes songs but they all still have their $9.99 cds that they can bring and play anywhere. Not every 9 year old has a $150 iPod.


I see both sides of this coin...people have been yapping about a digital-only world for decades. People are human...we like things we can touch and hold and store in our bookshelf. We question the purchase of a "service" that provides a virtual object.

I'd agree with the notion that people aren't over the notion of touching and holding things if the CD didn't die out so quickly, replaced by something we can't touch or hold.

 

[notjustjay]

I see both sides of this coin...people have been yapping about a digital-only world for decades. People are human...we like things we can touch and hold and store in our bookshelf. We question the purchase of a "service" that provides a virtual object.

Yes. I prefer to buy CDs whenever I still can. However, once I take the CD home, I rip it to MP3, store the files on my NAS, and put the CD in a bookshelf, (almost) never to be touched again.

Best of both worlds.

 

[ctdonath]

...we like things we can touch and hold and store in our bookshelf. We question the purchase of a "service" that provides a virtual object.

I have 26 bookcases. Last thing I need is yet another physical media object requiring me get a 27th.

If, for the price of a lunch or two, I can get all the "virtual objects" I want for a month, I'll opt for that - instead of yet another half-inch of something I'll watch once and then shelve forever.

I'm still of the "buy the CD and rip it" mentality, with boxfuls of CDs in storage. Couple days ago I bought another one, looked at my iPad, and realized that to play it would require waiting 'til I got home hours later, climbing over stuff to get at my now-barely-used home computer, inserting the disc, waiting 15 minutes for it to rip, tethering my iPad, waiting for it to sync, then - after subsequent wait for an opportune hour - FINALLY get to listen to the latest Orb album.
Suffice to say, my "buy and rip" paradigm is in danger of being replaced.

 

[314631]

So Apple should sell out some of that 50 billion in cash and buy netflix.

Apple wouldn't get the content deals. Those contracts are almost certainly none-transferrable through acquisition. And a lot of the value is in the content library and deals Netflix has in place. It would a lot more difficult for a compant the size of Apple, with all its devices, iTunes, etc. to negotiate content deals on similar terms.