NPD: Apple's iTunes takes biggest piece of online video on demand pie

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  • Reply 21 of 30
    elrothelroth Posts: 1,201member
    The way this story is written is a crock. Either DED is brain-dead today, or he's being purposely misleading.

    Some perspective:

    It appears Netflix would be in the category of "digital downloads not tied to a physical disk", so it has some part (probably a major part) of the 16% for that category. Apple would be in the categories of VOD/EST ("buying downoads") and iVOD ("renting downloads").

    Video on Demand is 12% of the consumer movie market. Of that 12%, the vast majority (72%) is from pay TV services. 16% (of the VOD market) is for buying downloads (EST), and 12% (of the VOD market) is for rentals (iVOD). So iVOD is 1.44% of the total movie market (12% of 12%), and Apple has 45% of that: Apple's rental movie business thus accounts for 0.648% of the total movie market, and its sales of movies account for probably about 1.3% of the total market (total electronic sales are 1.9%, and Apple is a dominant part of that). So Apple as a whole is about 2%.

    Of course, DVDs are outmoded (61% of the total movie market) and nobody wants an optical drive anymore.
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  • Reply 22 of 30
    MacPromacpro Posts: 19,873member
    Not bad for a hobby!
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  • Reply 23 of 30
    richlrichl Posts: 2,213member

    Quote:

    Originally Posted by elroth View Post



    The way this story is written is a crock. Either DED is brain-dead today, or he's being purposely misleading.


     


    That's his default mode. :)

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  • Reply 24 of 30

    Quote:

    Originally Posted by elroth View Post



    The way this story is written is a crock. Either DED is brain-dead today, or he's being purposely misleading.



    Some perspective:



    It appears Netflix would be in the category of "digital downloads not tied to a physical disk", so it has some part (probably a major part) of the 16% for that category. Apple would be in the categories of VOD/EST ("buying downoads") and iVOD ("renting downloads").



    Video on Demand is 12% of the consumer movie market. Of that 12%, the vast majority (72%) is from pay TV services. 16% (of the VOD market) is for buying downloads (EST), and 12% (of the VOD market) is for rentals (iVOD). So iVOD is 1.44% of the total movie market (12% of 12%), and Apple has 45% of that: Apple's rental movie business thus accounts for 0.648% of the total movie market, and its sales of movies account for probably about 1.3% of the total market (total electronic sales are 1.9%, and Apple is a dominant part of that). So Apple as a whole is about 2%.



    Of course, DVDs are outmoded (61% of the total movie market) and nobody wants an optical drive anymore.


    Hmmmm, I didn't think the point of the article is that Apple is taking a majority share of the overall market but the growing digital video market.  I'm also glad I re-read the link because that chart is showing share (of iVOD) after netflix is taken out of the equation because it dominates that category (with Apple dominating EST).  Oh, and the total VOD was 16% not 12%.

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  • Reply 25 of 30
    jragostajragosta Posts: 10,473member
    Hmmmm, I didn't think the point of the article is that Apple is taking a majority share of the overall market but the growing digital video market.  I'm also glad I re-read the link because that chart is showing share (of iVOD) after netflix is taken out of the equation because it dominates that category (with Apple dominating EST).  Oh, and the total VOD was 16% not 12%.

    Agreed. There is no implication that Apple has the majority of video watching of all types.

    The article is quite clear that FOR THIS GIVEN TYPE OF VIDEO WATCHING, Apple has a strong lead.

    Trying to get a clear picture of the entire industry from a single data point is foolish. However, when you start adding up all the data points from all different sources, a consistent picture begins to emerge.

    While Android may sell more phones, iOS has the overwhelming advantage in:
    Downloaded movies (this article)
    developer income
    Internet usage

    So this simply supports the consistent evidence that while Android may sell more phones, iOS devices get much more use. Whether this is because of inherent differences in the population or because so many Android phones are feature phones and not really useful for the above things is unclear.
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  • Reply 26 of 30
    asciiascii Posts: 5,936member

    Quote:

    Originally Posted by elroth View Post



    Of course, DVDs are outmoded (61% of the total movie market) and nobody wants an optical drive anymore.


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  • Reply 27 of 30
    jragostajragosta Posts: 10,473member
    elroth wrote: »
    Of course, DVDs are outmoded (61% of the total movie market) and nobody wants an optical drive anymore.

    Considering that no one ever said that DVDs were outmoded for home TV viewing (which is what this article is about), what's your point?
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  • Reply 28 of 30
    One day, and hopefully soon, the movie industry is going to realize discs are dead. And they will stop with the stupid pricing on streaming movies as well as the stupid wait times before a movie can be streamed. $6 to rent from a provider and $4 to rent from Apple, and nothing ever gets tiered until Netflix gets it. BUt its $1 to rent the same movie from RedBox, go figure.
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  • Reply 29 of 30
    dasanman69dasanman69 Posts: 13,002member
    wisdomseed wrote: »
    One day, and hopefully soon, the movie industry is going to realize discs are dead. And they will stop with the stupid pricing on streaming movies as well as the stupid wait times before a movie can be streamed. $6 to rent from a provider and $4 to rent from Apple, and nothing ever gets tiered until Netflix gets it. BUt its $1 to rent the same movie from RedBox, go figure.

    61% of the market is far from dead.
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  • Reply 30 of 30
    jragostajragosta Posts: 10,473member
    wisdomseed wrote: »
    One day, and hopefully soon, the movie industry is going to realize discs are dead. And they will stop with the stupid pricing on streaming movies as well as the stupid wait times before a movie can be streamed. $6 to rent from a provider and $4 to rent from Apple, and nothing ever gets tiered until Netflix gets it. BUt its $1 to rent the same movie from RedBox, go figure.

    While disks will probably die at some point, we're a long way from that.

    First, there's the issue of quality. VOD doesn't come near the quality of Blu-Ray and, in some cases, can't even match DVD.

    Second, accessibility. Not everyone has internet access on their TV.

    Portability. I can easily watch a DVD in a car if I wish.

    Finally, cost. Most of my DVDs cost me under $10. At $6 to rent, if I watch the movie more than once (as I often do), renting is a waste of money.

    I fully expect that at some point disks will no longer be prevalent. But let's wait until there's an alternative before claiming their death.
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