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12-29-2010, 02:07 PM #1
Analyst: Netflix Unscathed By iTunes Rental Service
It appears that Netflix will remain the big bad wolf in the realm of digital rentals for the time being. According to Analyst Brian Marshall with Gleacher & Company, Apple's iTunes rental service has barely made a dent in Netflix and the growing market that the online rental juggernaut continues to cultivate.
On Wednesday, Marshall proposed that Apple's iTunes rental service is roughly one-tenth the size of Netflix. Although Apple's offering (2005) is much newer than that of Netflix (1999), Apple sells fewer than 500,000 rentals daily via iTunes. Netflix, on the other hand, sees better than five million daily rentals. Apple's numbers may improve, however, given the rapid growth of Apple TV, which has now sold in excess of one-million units.
Marshall estimates that 90 percent of iTunes TV viewings are rentals at an average selling price of 99 cents and that 75 percent of movie viewings are rentals at an average price of $2.99. Using those figures, the analyst gets a current quarterly rental revenue figure of more than $60 million.
12-29-2010, 02:16 PM #2
The thing I don't like about Netflix streaming is that they are all older movies. Apple has the upper hand in providing movies that just came out, which is nice.
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12-29-2010, 02:31 PM #3
yes they are a little bit old but is way better to watch a lot of shows/tv for a monthly rate of 10dls or less than pay 99cents or more to watch a tv show thats free over the air or on hulu.
i personally dont see the big deal to apple rentals, im even surprised they rent 500,000 shows/movies, considering you can rent a blue ray movie on redbox for 1.5dls, or you can watch tv shows for free on hulu. (and others not so known pages).
just my 2 cents
12-29-2010, 02:39 PM #4
Is it just me, or was this obvious
12-29-2010, 02:40 PM #5
Maybe it's cause Netflix only has crappy old movies that no one would get from iTunesName? whereswaldo
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12-29-2010, 02:47 PM #6
Do iTunes rentals stream instantly?
12-29-2010, 03:05 PM #7Why netflix is better
Really the biggest issue is that netflix streams and Itunes doesn't. When people want to watch a movie or show, they don't want to wait hours. Once Apple gets streaming working, and a subscription service netflix will disappear.
12-29-2010, 03:08 PM #8
I have Netflix, love being able to stream and get blu ray in the mail, also watch on my iPhone. I was just wondering, is iTunes service a monthly subscription like Netflix or is it like pay as you view type thing? I like Netflix cuz I can watch all I want and pay a flat rate... Might get iTunes if it does that...
12-29-2010, 03:49 PM #9
Come on apple!!! Give us a monthly plan like Netflix! I'd gladly pay you 10 a month AND Netflix 8 a month for unlimited downloads! Hell, I'd prolly opt in for a bit more if you included a plan for music and music videos too. The current restrictions on rentals through iTunes (24 hours to finish watching, 1 device xfer, etc) would be avoided as would become stream on demand. If apple introduced this (the correct way) and hulu plus got much better I'd get them and Netflix and ditch directv all together.
12-29-2010, 03:50 PM #10
I wish Vudu had a subscription service.
It's the only online video streamer that provides content in 1080p and 720p. Plus, they get all of the new releases. They actually have animated movies and documentaries in HD that I have never heard of. Walmart needs to keep investing in it because its flat out awesome.
12-29-2010, 03:57 PM #11
Netflix stream right away on my apple tv. When I rent a movie throu Itunes. It takes a while to kick in.
12-29-2010, 03:59 PM #12
The only thing that's stopping me from ditching Dish Network is the stupid Lifetime Movie Network (the wife is addicted to it) and NFL Redzone (which I can live without). ESPN is on Hulu, ESPN 3 is on XBOX Live buy I may miss TNT for the NBA games but that's about it. I can get everything else over the air.
The first online streamer that gets live sports and newly released movies with a monthly subscription will blow the industry wide open.
Last edited by saunupe1911; 12-29-2010 at 04:05 PM.
12-29-2010, 04:24 PM #13
Netflix is the way to go. Apple TV still has glitches. I wanted to rent from Apple TV the other night. Movie never got past the five minute mark. Since we had company over had to go through Verizon which is a dollar more but at least works. Also you can watch as many movies as you want for one price and still get movies in mail. At this point Netfix is just better.
12-29-2010, 04:31 PM #14
Like others mentioned. If iTunes goes with a 20-30 dollar a month package. Movie/music/ hell even books streaming I would be all over it. I am currently overseas (uk) and I use gamefly for games. Have been paying 36 dollars a almost 2 years now. If iTunes went a similar route can you imagine how huge it would be? It would kill amazon, zune, netflix, blockbuster, etc.
12-29-2010, 07:58 PM #15
Even if Apple had a subscription service, not everyone has an Apple product. And that's why Netflix is doing so well. Netflix is on Xbox, PS3, Wii, iPad, iPhone, iPod, Android, PC, GoogleTV, AppleTV, Samsung, Vizio, LG, Sony, PC, Mac, and many, many other devices. iTunes? Only runs on Apple products and PCs. Unless Apple takes iTunes to Xbox, they won't ever give Netflix a run for their money. Netflix is far too entrenched.iPhone 4 to Android directly back to iPhone 4. I learned my lesson and will never leave iOS again.
12-29-2010, 08:04 PM #16
Netflix only has old movies? When did this happen? I always assumed they'd have new releases and such like blockbuster?
12-29-2010, 08:05 PM #17
iPhone 4 to Android directly back to iPhone 4. I learned my lesson and will never leave iOS again.
12-29-2010, 08:40 PM #18
The old movies are what generates the majority of netflix's business. The older generation, the ones who dont usually subscribe to things like this, love to watch the movies/tv shows that were hot and trendy when they were younger.
My mother subscribed as soon as she saw that she could watch the entire Kolchack series. Netflix has things you wouldnt hope to find on DVD in anything but the most obsure retail stores. That is a HUGE market and Apple would be wise to follow suit.EVGA P55LE Mobo/Core [email protected]/Corsair H50
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12-29-2010, 08:58 PM #19
12-30-2010, 01:20 AM #20