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06-02-2012, 12:33 AM #1
Netflix Supplants Apple as the Online Movie Money Making King
Netflix may have tripped over their own feet, and stumbled a bit with their subscription fee restructuring (not to mention Qwikster) but, the company still emerged as the online movie money making giant.
Netflix’s share of market revenue grew tenfold from 2010 to 2011 according to statistics released by research firm IHS. Netflix's percentage of the online movie market share jumped from 0.5% in 2010 to 44% in 2011 as well. Apple on the other hand saw a steady decline in its percentage of the online movie market share peaking in 2009 at 71.5%, and falling drastically from 60.8% in 2010 to 32.3% in 2011.
While Apple’s decline and Netflix’s success can partially be attributed to more players entering the online movie market, the larger trend affecting both companies involves how consumers are digesting their movies. Subscription-based-video-on-demand revenues jumped from a non-existent $4.3 million in revenues 2010 to $454 million in 2011, easily becoming the most valuable portion of the U.S. online movie market. SVOD saw a 10,000% increase in revenue compared to 75% growth experienced by traditional transaction services like iTunes.
“We are in the midst of a significant change in the way people pay to consume movies online. All the significant growth in revenue in the U.S. online movie business in 2011 was generated by rental business models, which provide temporary access, not permanent ownership. Rental delivers unlimited consumption with a low monthly fee for older titles as well as cheap rentals of new releases, providing the kind of value that online consumers want. In contrast, EST, which is much more profitable for studios on a per-transaction basis, is stuck in the doldrums.” — Dan Cryan, IHS research director for digital media.
The division won’t last forever though. As consumers’ viewing habits continue to change the studios will be forced to adopt a new business model. Apple’s entrance into the HDTV market might just be the catalyst needed to remove the movie studios and television networks from their entrenched business foxholes.
Or Apple could side with the studios and the release of the Apple HDTV could be utterly disappointing.
Source: IHS [via Apple Insider]
06-02-2012, 08:12 AM #2
All I know is our netflix streaming service never has any new titles, and itunes has them all, even some movies still in theaters! The choice is clear for me. I get all my streaming rentals on itunes. To each his own.
06-02-2012, 08:22 AM #3
I like my Netflix account... It has more than just movies... My little girl is constantly entertained with kid shows... For example.Hit the thanks button if I helped in any way
06-02-2012, 08:57 AM #4
Too bad Netflix changed there prices and there stock went down hundreds of dollars! It used to be ten dollars for streaming and a DVD rental. So you could get all the titles because you could stream and rent. But then they changed it to 18 for both! Those idiots!!!!
06-02-2012, 10:20 AM #5
06-02-2012, 10:44 AM #6
Netflix doesn't have any good movies anymore, besides the office! The only reason there the most popular is because their service can be used on any platform.
06-02-2012, 10:52 AM #7
I don't get it. How can the two services be compared? One service is unlimited streaming for "X" amount off dollars, and the other is more of a retail store. Thats like comparing Panera bread, to a buffet style restaurant!
06-02-2012, 12:06 PM #8
Last edited by brodimus; 06-02-2012 at 12:11 PM.
06-02-2012, 02:14 PM #9
I have to agree that the two just simply cannot be compared.
@ the torrent guy... We're not interested in pirating in this forum...Hit the thanks button if I helped in any way
06-02-2012, 03:09 PM #10
iTunes downfall could be because studios giving Ultra-Violet digital copies of the movies with the purchase of the Blu-ray. Universal Studios and Paramount give you SD digital copy for iTunes. Fox is switching to Ultra-Violet as soon as the HBO legal issues are resolved. Sony and Paramount give you the HD version of the movie in Ultra-Violet.
06-02-2012, 06:00 PM #11
06-02-2012, 07:00 PM #12
I think this is an example of good marketing and ease of use over the latest, greatest shiny and new. What I mean is this..Netflix is targeted to families in my opinion. You can let your kid search for a movie from multiple sources..any smartphone, computer, xbox, playstation, wii...(you get the picture) In the meantime you can access iTunes via computer, iPhone, iPad, iTouch, Apple tv...looks to me like Netflix can be accessed by more devices thus reaching the bigger crowd. Apple should make an iTunes application for other OS's..let the consumer choose. Maybe once the Apple HDTV droppes they will have an iTunes application on it and not the mirroring we see on the little black box..can't wait!