Netflix has 61% of digital movie units, Apple at 4%

By on March 15, 2011, 1:46 PM
Digital video now makes up one quarter of all home video volume. Netflix's share of digital movie units, downloaded and streamed, reached 61 percent between January 2011 and February 2011. This was followed by Comcast in second place at 8 percent, and a three-way tie for third at 4 percent among DirecTV, Time Warner Cable, and Apple.

The data is for the home video market in the US, collected by The NPD Group. The company surveyed over 10,600 people to determine how Americans are consuming video online via subscription streaming, video-on-demand (Internet and cable), as well as digital movies purchased/rented online.

NPD analysts believe the huge gap is not just due to price but due to overall experience. Apple's store has a much wider selection of up-to-date titles, but Netflix offers an $8 per month streaming option and a better "overall shopping experience," according to respondents.

"Sales of DVDs and Blu-ray Discs still drive most home-video revenue, but VOD and other digital options are now beginning to make inroads with consumers," Russ Crupnick, entertainment industry analyst for NPD, said in a statement. "Overwhelmingly digital movie buyers do not believe physical discs are out of fashion, but their digital transactions were motivated by the immediate access and ease of acquisition provided by streaming and downloading digital video files."

Last year, Netflix saw its biggest year yet, adding 7.7 million subscribers and passing the 20 million subscriber mark. This year, the company is considering an overseas expansion.





User Comments: 5

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Raswan Raswan said:

How long, do we think, before movies that are released to dvd and blue ray are simultaneously made available for streaming? Anyone have an educated guess?

Guest said:

Too bad we will be capped too hard soon...

Zilpha Zilpha said:

How long, do we think, before movies that are released to dvd and blue ray are simultaneously made available for streaming? Anyone have an educated guess?

Not soon enough as far as I am concerned.

I wouldn't mind seeing CDs, DVDs, and even the coveted BluRay go the way of the dodo entirely. Why have all this plastic media laying around when it can be streamed from a server and accessed nearly anywhere, anytime?

Easier for travel and easier on the environment. We need to upgrade infrastructure to handle it, but it's about time that the US started to catch up to some of these other countries that supposedly have fewer resources (but still have higher average bandwidth into homes).

3DCGMODELER 3DCGMODELER said:

Zilpha said:

How long, do we think, before movies that are released to dvd and blue ray are simultaneously made available for streaming? Anyone have an educated guess?

Not soon enough as far as I am concerned.

I wouldn't mind seeing CDs, DVDs, and even the coveted BluRay go the way of the dodo entirely. Why have all this plastic media laying around when it can be streamed from a server and accessed nearly anywhere, anytime?

Easier for travel and easier on the environment. We need to upgrade infrastructure to handle it, but it's about time that the US started to catch up to some of these other countries that supposedly have fewer resources (but still have higher average bandwidth into homes).

money, greed, etc etc

lipe123 said:

3dcgmodeler said:

Zilpha said:

How long, do we think, before movies that are released to dvd and blue ray are simultaneously made available for streaming? Anyone have an educated guess?

Not soon enough as far as I am concerned.

I wouldn't mind seeing CDs, DVDs, and even the coveted BluRay go the way of the dodo entirely. Why have all this plastic media laying around when it can be streamed from a server and accessed nearly anywhere, anytime?

Easier for travel and easier on the environment. We need to upgrade infrastructure to handle it, but it's about time that the US started to catch up to some of these other countries that supposedly have fewer resources (but still have higher average bandwidth into homes).

money, greed, etc etc

You will make a lot more money if you dont need to distrib stuff on CD/DVD/Blu ray and instead just sell the rights to view it online.

On another note it would be nice if netflix Canada would get their act together and put movies like LOTR up that was realease NINE YEARS ago!!

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