Similar to what things were like with digital music downloads, iTunes’ early-mover advantage in video downloads has managed to secure it a massive lead over its competitors in the sector according to new findings.
The NPD Group on Tuesday released new figures on the home digital-video sector, finding Apple holding a 67% share of the digital TV download market, as well as a 65% share of the movie market. No competitor comes close as Apple outstrips the closest individual services – Microsoft’s Xbox Video and Amazon’s Instant Video – several times over. Xbox Video accounted for 10% of electronic sell-throughs in movies and 14% for TV shows according to NPD’s figures showed. Amazon’s Instant Video accounted for 10% in movies and 8% in TV shows.
Services outside of iTunes, Xbox, and Amazon all amounted to 16% share for movies and 10% share for TV shows. The Internet video-on-demand (iVOD) sector saw Apple’s lead persist, although to a lesser degree. Apple grabbed 45% market share of online movie rentals, which was more than twice that of its next competitor. After Amazon’s 18% market share, the field rounded out with VUDU and Xbox Video with 15% and 14% respectively. All the other providers amounted to 8% share. According to senior NPD analyst Russ Crupnick:
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. While worthy competitors have come along, no other retailer has so thoroughly dominated its core entertainment product categories for so long.
It should be noted that the study only measures video content that is purchased by consumers for permanent ownership. This means it does not take into account Netflix, which is known to be the one of the largest consumers of Internet bandwidth in the world due to the popularity of its streaming service.